1.Equity — обыкновенная акция, доля акционера

2.voting — вотирование, голосование

3.nonvoting — невотированные (неголосующие)

4.to vote by proxy — голосовать по доверенности представителем

5.to claim on assets — предъявлять права на активы

6.to suspend — временно прекращать, приостанавливать

7.par value — номинал

8.face value — номинальная стоимость

9.no-par stock — акция без указания номинальной стоимости

10.option trading — торговля опционами

11.contractual agreements — целевые соглашения, соглашение, основанное на договоре

12.stock certificates (certificates of stock) — сертификаты на акции

18.7.1.4. Read the text “Securities — Bonds,” translate it and comment on the specific features

of obtaining earnings from all kinds of bonds.

Securities — Bonds

A bond can be thought of as basically a loan agreement. It is a certificate showing that the

bondholder has lent a specific amount of money to a corporation or to a government agency and

expects to be repaid with interest at some specified date. Interest is usually paid periodically. Bonds

confer no rights of ownership, but they do carry a legally enforceable promise to repay.

Most bonds are offered in 1,000-dollar denominations. Others, called baby bonds, come in

500- or 100-dollar denominations. Bonds are not sold singly, however, but in round lots — usually

of 100,000 dollars. Consequently, the small investor is not the usual bond buyer. Most bonds are

purchased by institutional investors — insurance companies, foundations, colleges and universities,

and pension funds.

Most bonds used to be issued in bearer form — the owner was considered to be whoever

possessed the certificates. The certificates could be passed from one person to another. Most

bonds now are fully registered: the owner’s name is on the certificate, and when it is sold it must

be sent to the issuer for a transfer of title. With bearer bonds the interest is claimed by clipping off

attached coupons and presenting them for payment to an agent of the issuing corporation or

government agency. Because bearer bonds proved difficult to trace when they were lost or stolen,

the federal government has forbidden further issuance of them, but there are many outstanding

bearer bonds that will not be fully redeemed until well into the 21st century. Registered bonds

are more secure. They do not have interest coupons. The interest payments are made by check to

the registered bearer.

Bonds have different maturity rates. Short-term bonds mature in from one to five years, intermediate

bonds in from five to ten years, and most long-term bonds in from 15 to 20 years. Longterm

bonds are not necessarily held to maturity. It is to the advantage of the issuing company to

redeem them early. Thus many bonds have a call feature: the corporation has the right to call them

In and pay a premium over the price at which the bonds are currently selling.

Different types of bonds may be categorized according to the use to which the money will be

put. Mortgage bonds, for example, are backed by the property of the corporation. Equipment trust

certificates are used by railroads and airlines to purchase rolling stock and airplanes.

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The many mergers and acquisitions that have taken place since the early 1960s have brought the

term junk bonds into prominence. These are loan certificates, issued by corporations, that are of

less than investment-grade standards. The risk in owning them is balanced against their higher

yields. The money that a company gets from selling junk bonds is normally used to retire the debt