Слова и выражения:
ass – осел
correction – исправление
drop – ронять, обронить, разг . бросить
editor – редактор
entrance – вход ( в здание )
ferocious – свирепый, жестокий
headline – заголовок в газете
mascot – талисман ( здесь : всеобщий любимец и хранитель)
plain – простой, недалекий, глупый
pompous – напыщенный, хвастливый
simple – простой, глупый
throttle – давить, душить
valiant – доблестный, мужественный
take a day off – взять выходнойExercise 6
Answer the questions:
1. Was the man who had dropped the money, a bull or a bear?
2. Where did the young man decide to go on his day off?
3. Who did the young man notice at the entrance hall?
4. What did he do to the dog?
5. What did he do it with?
6. What did the newspaper headline say the next day?
7. Why did the stockbrocker ask the editor to make corrections?
8. Why did the editor make such a correction?How to Make Money in the Stock Market
Investors buy stock for one simple reason: to make money. The surest way to earn money from investing is to create as diverse a portfolio as possible, and hang on to it for a long time. To succeed at making money investors need good sources of information.
Much information is supplied by stockbrokers. They study market reports and get information on the forecasted financial performance of companies. Brokers usually recommend opportunities or provide special services such as newsletters. For this brokers charge additional fees.
Sometimes investors prefer to avoid high brokerage fees. They implement their own investment strategies. Serious investors subscribe to investment newsletters and carefully study the stock market. Best investors become an expert in a particular industry.
A simpler investment strategy is to choose some reliable blue chip stocks and stick to it. This strategy is safe and can earn money over the long run. Investors should avoid making common mistakes which are: 1) a failure to diversify, 2) paying too much for a stock which would not go up, 3) not knowing when to sell a stock going down, 4) paying too much attention to rumours and tips.
There are also several techniques of predicting the stock prices. Most investors begin with the fundamental analysis, which is the process of comparing a company\'s current financial position and future prospects with those of other firms in the same or other industries. Some investors usually called «chartists» try to identify a specific stock\'s behaviour charting it over time and then predicting the future price movement. Other investors believe that prices are random. The random walk theory is based on the assumption that future stock prices are independent of past stock prices. These investors choose stocks at random.
A group of investors has adopted an unusual approach, contrarianism, which holds that the market will move in the direction opposite to that predicted by the general public. In other words, these investors do the opposite to what the general public does.
Слова и выражения:
behaviour – поведение
charge – назначать (цену)
chart – график, диаграмма, схема; чертить график, схему, диаграмму
chartist – «чартист», биржевой прогнозист, основывающий свои суждения на графиках и схемах
contrarianism – поведение участников фондового рынка, принципиально действующих иначе, чем основная масса инвесторов
diverse – различный, разнообразный, отличный (от)
diversify – диверсифицировать, разнообразить
expert – эксперт, знаток
failure – неуспех, неудача, провал
forecast – предсказывать
implement – внедрять, вводить, использовать
newsletter – бюллетень
particular – особенный, определенный
portfolio – портфель ( инвестиционный )
predict – предсказывать
random – случайный, сделанный наугад
reliable – надежный
rumour – слухи, сплетня
stick – придерживаться, «прилепляться»
subscribe – подписываться
succeed – преуспевать ( в чем-либо )
technique – техника, технология, способ
tip – совет
hang on to it – придерживаться его
blue chips – «голубые фишки», акции ведущих компаний, имеющие традиционно высокую доходность и небольшой номинал
over the long run – в долгосрочном режиме
pay attention to – обращать внимание (на)
random walk theory – теория формирования фондовых цен, основанная на признании случайности как основного фактора ценообразования
at random – наугад, повинуясь случаю
Exercise 7
Answer the questions:
1. What do investors buy stock for?
2. What is the surest way of making money?
3. Who can supply an investor with information?
4. What do investors do in order to avoid high brokerage fees?
5. What is the simplest investment strategy?
6. What are common mistakes that investors make?
7. How do investors carry out the fundamental analysis?
8. What do «chartists» do?
9. What is the random walk theory?
10. How do contrarians perform in the market?Great Stock?
A stockbroker was cold calling about a penny stock and found a taker. «I think this one will really move,» said the broker, «it\'s only $1 a share.» «Buy me 1,000 shares,» said the client.
The next day the stock was at $2. The client called the broker and said, «You were right, give me 5,000 more shares.»
The next day the client looked in the paper and the stock was at $4. The client ran to the phone and called the broker, «Get me 10,000 more shares.»
«Great!» said the broker.
The next day the client looked in the paper and the stock was at $9.
Seeing what a great profit he had in just a few days, the client ran to the phone and told the broker, «Sell all my shares!»
The broker said, «To who? You were the only one buying that stock.»
Слова и выражения:
taker – разг . покупатель
cold call – слэнг обзванивать список незнакомых людей, предлагая им акции
penny stock – разг . «копеечные» акции
Exercise 8
Answer the question (only one):
What would the client have to do with all the stock purchased, as well as the broker who had sold him this stock?Junk Bonds
Junk bonds are high yield securities which are issued by corporate borrowers. Junk bonds are rated as less than «investment grade» by the bond-rating services, such as Moody or Standard and Poor.
Bond ratings is a special tool to measure the riskiness of bonds, that is the chance that the issuing company will not be able to pay the principal or make interest payments. The riskier a bond, the lower its rating. Bonds with more A\'s are less risky than bonds with fewer A\'s, and the highest rating (for Standard and Poor\'s) is AAA, or triple-A. This means that the companies must pay higher rates of interest on their bond issues than other corporations pay on investment-grade bonds. That is why non-investment-grade bonds also go by the name of high-yield bonds. For the same reason junk bonds are attractive to both debtors and investors. Low-rated debt earns a high risk-adjusted rate of return. In other words, the interest-rate premium on low-rated debt is higher than is justified by the added risk of default. Therefore, someone who buys a diversified portfolio of these risky bonds would do better than someone who buys investment-grade bonds, even after deducting losses on the bonds that defaulted.
The bonds of 95 percent of U.S. companies with revenues over $35 million and of all companies below that amount – are rated non investment grade or junk. Some of the largest corporations, such as IBM and General Motors, and even the U.S. government were at times below investment-grade rating.
For many companies in periods of major structural economic changes (foreign competition, technological shifts, deregulation) capital is a missing element for economic adjustment. The high-yield market effectively provides funds to overcome the problems of this period. In addition, junk bonds make it possible for weaker companies to compete more successfully with investment-grade companies for financing.
Слова и выражения:
junk – хлам, отбросы, утиль
tool – инструмент
principal – основная сумма (долга)
triple – тройной
debtor – дебитор
premium – премия
justify – оправдывать
deduct – вычитать, удерживать
losses – потери
default – неисполнение обязательств
shift – сдвиг, изменение
deregulation – снятие ограничений, дерегуляция
miss – отсутствовать, недоставать
effectively – эффективно
overcome – преодолевать
junk bonds – «бросовые» облигации
high-yield – высокодоходный
corporate borrowers – корпоративные заемщики
investment grade – инвестиционный уровень ( рейтинг облигаций, внушающий заемщику уверенность в возврате долга и выплате процентов по долгу )
bond-rating services – службы определения рейтинга ценных бумаг
riskiness of bonds – рискованность облигации
interest payments – выплата процентов по долговому обязательству
risk-adjusted – включающая страхование ( компенсацию