Retained Profit

for, through, in, within, to, of(6), after

retained profit is the amount … profit tax that directors … a business decide not to distribute … their shareholders, but to keep … the business. It is held as an increase .. the capital and reserves … the purchase … assets. Retained profits from the most important source … finance … business expansion.

Exercise 5. Write an appropriate word or phrase in the following sentences

distributed, share issues, premises, hire purchase, a grant, retained profit, cash flow, a loan (2), cash.

1. I’d like to pay in …, please.

2. The bank agreed to give the company … of $100,000.

3. The … in our country is good because we take in much more money than we

spend.

4. Our … will provide capital for the planned growth next year.

5. I applied at the bank for … at 7% interest

6. The Ford Foundation gave the economist … for research.

7. He bought a computer on … .

8. A guard asked the stranger to leave the … .

9. As Britain recovers from recession, computers will seek to rise finance through …

10. Goods are … to our major customers first.

Exercise 6. Sum up what you remember about:

1. financial reserves;

2. retained profit;

3. borrowings;

4. share flotation;

5. grants and loans.

Exercise 7. Answer the following questions:

1. What do businesses need financial reserves for?

2. What do companies need working capital for?

3. What are the main ways of obtaining capital?

4. What is meant by the «retained profit»?

5. Is retained profit distributed to shareholders?

6. What are the main types of lenders to business?

7. When do companies make share flotations?

Unit 32. Stock exchange Active Vocabulary

stock exchange share market bourse corporation mutual organization facilities redemption financial instrument capital events traded on stock brokers trades trade stock securities dividends shares issued units trusts bonds recordkeeping electronic networks cost of transaction initial offering by definition primary market subsequent secondary market stock market is driven		фондова біржа фондова біржа (ринок акцій) фондова біржа (паризька) корпорація спільне підприємство послуги вилучення з обігу фінансові документи форми фінансування акціонерні події ті, що продаються біржовий маклер торги торгівля цінними паперами цінними папери дивіденд, частка випуск акцій трасти (концерн) облігації облік електронні мережі вартість торгової операції (угоди) початкова пропозиція за визначенням основний ринок послідовний вторинний ринок ринок цінних паперів керується
free market compulsion over-the-counter increasingly	вільний ринок примус позабіржові відносини в більшості

A stock exchange, share market or bourse is a corporation or mutual organization which provides «trading» facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors, such as affecting the price of stocks.

There is usually no compulsion to issue stock through the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded. Increasingly, stock exchanges are part of a global market for securities.

Exercise 1. Give the English for:

фондова біржа, спільне підприємство, випуск акцій, торгівля цінними паперами, послуги, біржовий маклер, вилучення з обліку, послідовний, вартість торгової операції, початкова пропозиція, облік, електронні мережі, облігації, позабіржові відносини, основний ринок, керується, за визначенням.

Exercise 2. Match words from list A with words from list B that have a similar meaning:

A B

stock exchange services

mutual organization price of deal

redemption off exchange

facilities share market

initial offering joint venture

capital events record

over-the counter withdrawal

cost of transaction share information

recordkeeping force

compulsion first proposal

Exercise 3. Translate the following sentences:

1. Фондова біржа - це спільна організація, яка надає послуги торгівлі цінних паперів біржовим маклерам та торговцям. 2. Фондова біржа також надає такі послуги, як випуск ти вилучення з обігу цінних паперів, форми фінансування, розповсюджує інформацію про акціонерні події, включаючи прибуток оплати та дивіденди. 3. Цінні папери продаються на фондовій біржі, включаючи акції, які випускаються компанією, трастами, а також облігації та інші інвестиційні папери. 4. Торгівля цінними паперами може відбуватися тільки членами фондової біржи. 5. Попит та пропозиція на ринку цінних паперів мотивується різними факторами, такими як вплив ціни на цінні папери. 6. Якщо акції не продаються і не випускаються на фондовій біржі, то таку торгівлю називають позабіржовими відносинами.

Exercise 4. Answer the following sentences:

1. What do you understand by Stock Exchange?

2. Who takes part in Stock Exchange?

3. What does Stock Exchange deal with?

4. What is issued on the Stock Exchange?

5. Why the electronics network is getting more widespread nowadays? What are the advantages?

6. What do you understand by the over-the-counter?