FD-301_vsyo / Subj / 455-Банковское дело и финансы. Часть II

Share markets (also subdivided into spot markets and futures markets) are institutions where shares are bought and sold according to fixed rules but at prices controlled by supply and demand.

The principle of the stock-market is well-known: companies issue shares (British) or stocks (American) and market them to raise additional funds called equity (or share) capital. Shares of the most successful and powerful companies, paying the highest dividends, are called blue chips.1

In both currency and share-markets deals are concluded by brokers (individuals or companies) who receive the broking commission for their services. The two tactics of market-makers are known as those of "bears"2

(lowering the prices) and "bulls"3 (pushing the prices up).

The condition of share markets as a whole is reflected by many indices, the most widely known of them being the Dow Jones in the USA and Nikkei in Japan.

As for the share capital itself it is subdivided into two main categories: privileged shares (American: preferred stock) and ordinary shares (American: common stock). Holders of privileged shares get their dividend payments at a fixed rate, regardless of the market performance of the company's shares, e.g. 5% annually of the par nominal value of the share. This is not always good, for if the company performs exceptionally well, holders of the ordinary shares get the corresponding dividends (say, 50%), whereas the holders of privileged shares still have to be content with the same 5% (if the rules do not stipulate otherwise). Owners of preference shares are sometimes also excluded from the management of the company and have no voting rights.

Decisive control over the company’s policy is most often (although not always) exercised by the controlling share-holders (also called majority shareholders), i.e. the owner of more than 50% of all shares.

NOTES

1. blue chips — « голубые фишки» (наиболее прибыльные акции крупных компаний)

2.“bear” n — « медведь» (биржевое)

3.“bull” n — « бык» (биржевое)

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Exercise 1. Match each verb in column A with a noun in column B that can follow it. Translate the word-combinations into Russian:

A	B
1. to issue	1. price
2. to stipulate	2. commission
3. to establish	3. shareholders
4. to receive	4. control
5. to exclude	5. funds
6. to pay	6. deals
7. to raise	7. shares
8. to have	8. dividends
9. to exercise	9. rights
10. to conclude	10. rules

Exercise 2. Find in the text English equivalents for the following:

рынок наличного товара; фьючерсный рынок; по заранее установленной цене; форвардные валютные контракты; цены, контролируемые спросом и предложением; акционерный капитал; номинальная стоимость; право голоса; надзор за политикой компании.

Exercise 3. Give the synonyms for the following:

free currency; to get commission; common stocks; privileged shares; owner of shares; majority of shareholders; equity capital; futures currency market; urgent delivery; to fix the price; concerned; in theory; in accordance with

Exercise 4. Answer the questions:

1.What is the difference between spot and futures markets?

2.How are futures currency markets often called?

3.What are share markets?

4.What is understood by “blue chips”?

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5.Who concludes deals in both currency and share markets?

6.What tactics of market-makers do you know?

7.What do indices reflect?

8.What are the most widely known indices?

9.What are the two main categories of share capital?

10.Do the owners of preference shares have voting rights?

11.Who controls the company’s policy?

Exercise 5. Fill in the blanks with the missing words from the box:

shareholder	choose	spending
dividend	buy	issuing
loans	borrow	ordinary
shares	grow	per
profits	lose	twice

The Stock Exchange

When a company needs to raise money in order to __1__, it can __2__ between two different options. It can issue shares which can be bought by the general public. These shares are known as equities or__3__ shares, and are the most common form of share. When you __4__ shares in a company, you become a __5__ and own a part of (or have a stake in) that company. As part owner of a company, you can therefore make or ___6__ money depending on the company's profits. If the company does make __7__it pays a sum of money __8__ share, known as a __9__, to its shareholders usually __10__ a year. Companies can also __11__ money from a bank or from the general public by __12__ bonds which are loans with a fixed amount of interest to be paid each year.

Each year, billions of pounds of __13__ are bought or sold (or traded) on the London Stock Exchange. In addition to the shares mentioned above, government stocks, or gilt-edged securities are also traded. These are __14__

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issued by the government to help it fund its __15__ (building roads and hospitals, defence, etc.)

Exercise 6. Read the extract and explain how the stock market works.

The principles of the stock market are similar to all others. For every buyer there has to be a seller. When more people wish to buy than to sell, the price tends to rise; when fewer people wish to buy and many wish to sell, the price tends to fall.

So broad is the ownership of stock shares that owners can easily follow the fortunes of the market on a daily or even hourly basis. Investors get their information in a variety of ways. If they are willing to wait until the markets close, they can simply look at the markets pages of large daily newspapers to find out what happened in the previous trading session. There are a variety of indices that measure market activity broadly, and individual stocks are also listed, showing the number shares traded, the closing price, and high and low prices reached during the trading session. Certain television programs devoted to business report immediate developments in market movements. For those who insist on getting up-to-the-minute information about price movements of individual stocks, computerized services will deliver this information almost instantaneously to their homes over telephone lines.

Also, investors often subscribe to magazines and newsletters devoted to analyzing movements in individual stocks and the markets in general, and speculating about the future.

Once a company has sold its original stock to the public and it is traded freely in the market, the price will be determined continuously during the trading day by what buyers will pay and what sellers will take. It is simply a matter of supply and demand. Thus, the price is the composite opinion of all the people who buy and sell that stock.

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a. различными способами

b. на каждого покупателя должен быть продавец

c. подписываться на журналы d. вопрос спроса и предложения e. определять цену

f. узнать, что случилось

g. в течение дня или даже часов h. делатьпредположениявотношении

будущего

i. количество акций на бирже j. заключительная цена

Exercise 7. Match the expressions from the left column and their translations from the right:

1. a matter of supply and demand

2. the closing price

3. in a variety of ways

4. on a daily or even hourly basis

5. the number of shares traded

6. for every buyer there has to be a seller

7. to subscribe to magazines

8. to speculate about the future

9. to determine the price

10. to find out what happened

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UNIT 4

CHELINDBANK

1. Consult the Economic dictionary. Give the Russian equivalents for the words and word-combinations:

replenish

replenishment: replenishment of inventories

investment: investment for a money return, to carry out investment, to check investment, desired investment, financial investment, human investment

accumulate

accumulation: accumulation of risk

board: on the board, to appoint a board, to be on the board, board of customs, board of trastees, advisory board, supervisory board

boardman

settlement: settlement of account, settlement of claims

cash: cash at bank, cash in hand, cash on delivery, cash settlement, to cash a bill, to cash a letter of credit, counter (till) cash, hard cash, idle (temporary redundant) cash

cashable

cash-and-carry

cashbox

cashier: assistant cashier

cashless

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clearance: customs formalities clearance, quality clearance clearing: clearing of securities, bank clearing

overdraft: overdraft of credit

transfer: cable transfer, capital transfer, electronic fund transfer transferable: transferable by delivery

transferee transferor

custodian custodianship

custody: in custody, safe custody of securities

bullion: fine bullion, standard bullions

performance: market performance, overall performance, product performance

forex (foreign exchange)

turnover: turnover of capital, annual turnover, cash turnover, foreign trade turnover, freight turnover

2. Read and translate the text

CHELINDBANK ACTIVITIES

Chelindbank, one of the largest banks of the Ural region, provides service to 15 000 corporate clients and 250 000 individuals. The principal district of Chelindbank’s activity is the Chelyabinsk Region, center of metallurgy industry and mechanical engineering. Chelindbank 's main goal is to create effective

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system of savings accumulation and to direct the savings to development of real sector of economy.

The Bank current activities are carried out by the General Director – Board Chairman and the Bank Board. There are three Committees by the Bank Board: Credit Committee, Assets and Liabilities Committee and Informational Technologies Committee.

Customer base is the foundation of banking business. Among Bank customers there are enterprises of different industries: engineering – FGUP PA "Mayak"; non-ferrous metallurgy – Chelyabinsk Elect rolytic Zink Plant, Kyshtym Electrolytic Copper Plant, “Ufaleynickel” Company; ferrous metallurgy – Asha Metallurgical Plant, Chelyabinsk Electrometallurgical Plant; electric power engineering – "Chelyabenergo"; food industry – "Bread Products Combine" named after Grigorovich, "Zolotoy Ural" Company; communication – "South Ural Cellular Telephone" Company and many others.

Chelindbank offers the complete set of settlements and cash services to enterprises and organizations:

∙opening payment and current accounts;

∙effecting all kinds of clearing payments;

∙accepting and delivering cash at the Bank counters;

∙maintenance of payment accounts through electronic "Client + Bank" system;

∙cash collection services;

∙up-to-date ways of settlements (letters of credit, bills, overdrafts);

∙consulting the Bank customers in effecting payments and completing

payment documents.

The up-to-date technologies applied by the Bank facilitate to carry out settlements between the branches through the Bank Settlement Center within 30 minutes and all payments of Bank customers – during one operational day.

Complex customer servicing is impossible without development of credit operations, therefore the Bank steadily increases its investments to the

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Chelyabinsk Region economy. Chelyabinsk has one of the leading position on retail banking market in the Chelyabinsk Region. Chelindbank provides a wide range of high-quality banking services for private customers such as:

∙deposits in RR and foreign exchange

∙foreign exchange purchase and sale operations

∙services for VISA card owners

∙services for holders of rouble payment cards "Zolotaya Korona"

∙lending

∙payments in favour of different enterprises and companies

∙money transfers, including Western Union settlements

∙traveler's cheques

∙operations with securities and bills

∙safe custody

∙sale of precious metals coins and bullions.

When issuing a loan the Bank thoroughly studies the borrower's financial performance and conducts constant running monitoring of his activity. Among the Bank borrowers there are about 800 enterprises and companies and above 10.000 individuals. Provisions for credit losses are established according to international standards requirements.

A spirit of partnership characterizes Chelindbank relationship with the leading worldknown international and Russian banks. As on 01.01.2003 the Bank had 20 nostro accounts with 13 foreign banks and 15 nostro accounts (including 9 accounts in roubles) with 8 Russian banks. The principal correspondent banks are the largest banks of the USA, Germany, Austria, Great Britain, Switzerland. Besides Chelindbank has four nostro accounts in currencies with limited conversion for settlements with CIS countries. Chelindbank also maintains 21 loro accounts in roubles and foreign currency for 16 Russian banks. At present the Bank has correspondent relations with 68 foreign and 61 Russian banks. The Bank communicates with its correspondent banks through up-to-date systems – SWIFT, internati onal telex, e-mail, Internet.

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The Bank is an active participant of the foreign exchange market. For forex transactions the Bank applies the advanced information technologies, such as on-line trading via Internet on major Russian Currency Exchanges and settlements with Russian and foreign banks via REUTERS system. The Bank has a strong position on the local foreign exchange market, ranking as № 1 by the foreign cash turnover.

Chelindbank is a registered dealer on government securities market and a member of a Stock Section of Moscow Interbank Currency Exchange. Securities trading is performed from remote MICEX workplaces situated in the Bank in the real time-mode.

Exercise 1. Match the English and Russian equivalents:

1. forex transaction	a.	денежные переводы
2. letter of credit	b.	безналичный расчет
3. traveler’s cheques	c.	кассы банка
4. money transfer	d.	официальный дилер
5. customer base	e.	финансовые ресурсы
6. payment account	f.	дорожные чеки
7. clearing payment	g. клиентская база
8. registered dealer	h. расчетный счет
9. bank counters	i. аккредитив
10. financial resources	j. валютно-конверсионные
		операции

Exercise 2. Give the English equivalents for the word-combinations:

-пополнение оборотных средств

-система аккумулирования сбережений

-Комитет по управлению активами и пассивами

-валютный рынок

-комплекс услуг по расчетно-кассовому обслуживанию

-оборот наличной иностранной валюты

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