11. Answer the following questions based on text b:

1. What does the term "security" signify?

2. What stands behind the concept of "limited liability"?

3. What rights does a stockholder enjoy?

4. How can stocks be classified?

5. What are the advantages and disadvantages of each type of stocks referred to in the text?

12. Make up sentences of your own using the following expressions from text b.

An ownership position in a corporation, to be referred to as investors,

to redeem a bond on a maturity date, to be a legal entity, to act in trust for smb., the company's earnings, to fluctuate in line with smth., to raise the value of a stock, to judge the odds, a clear growth trend.

13. Say what is true and what is false. Correct the false sentences.

1. Security is an instrument that signifies only a creditor relationship with a corporation or government body.

1. There are no age limits for buying or selling stock.

2. The proportion of rights of corporation is defined by the number of shares a stockholder owns.

3. People who want to take greater-than-average risk usually invest in "low-growth" stock.

4. The potential rewards from "high-growth" stock are high, but the stock can drop in price at incredible rates when earnings don’t grow as expected.

1. You can easily recognize the bottoms and tops of the cycle in order to buy or sell stock profitably.

5. The situation when particular corporate development seems likely to raise the value of stock is called special.

14. Using the words in brackets, explain the meaning of the following terms:

investment company (organization, special charge, to invest, financial, instruments, monitory funds);

blue chips (stocks, to trade, to be reliable, high price);

cyclical stock (growth, to show, the bottom, the top, to buy, to sell);

stockholder (to possess, the right, to take part, to control, to vote, to get dividends);

securities (unit of fixed obligation, a company, government, fixed term, stock or bond);

listed security (stock or bond, to be accepted, trading, security exchange);

giant corporation (extremely large, organization or firm, complex structure, stockholders).

15. Match the following words with the correct definition from the list.

Gilt-edged security, growth stock, maturity, common stock, trust company, legal entity

1. A stock of a corporation that has exhibited faster-than-average gains in earnings over the last few years and is expected to continue to show high levels of profit growth.

2. A stock or bond of a company that has demonstrated over a number of years that it is capable of earning sufficient profits to cover dividends on stocks and interest on bonds with great dependability.

3. Units of ownership of a public corporation. Stockholders are entitled to vote on the selection of directors and other important matters as well as to receive dividends on their holdings.

4. The date on which the principal amount of a debt instrument becomes due and payable.

5. An organization usually combined with a commercial bank, which is engaged as a trustee for individuals and businesses.

6. A person or organization that has the legal standing to enter into a contract and may be sued for failure to perform as agreed in the contract.