12. Answer the following questions based on text b:

1. What is the market average? What do you come to know about its history? How can you characterize daily changes in the averages?

2. What information do the newspaper financial pages provide?

3. Why is the Price-Earnings Ratio a key figure in judging the value of a stock? What are the possible fluctuations of the multiple?

4. What other stock tables do the financial newspapers and magazines carry?

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

The financial pages of the newspaper, the market averages, the earliest stock market theorists, to change rapidly, complicating factors, net profits for the year, the value of the stock, the price-earnings ratio, daily changes in the averages.

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

1. Market Average is a way to show the inside temperature of the market building.

2. The Dow Jones Industrial Average is not so popular on the stock market because it appeared in 1990s.

3. The daily changes in the averages are shown in percentage terms.

4. 2% is a moderate daily change of the market.

5. Financial tables in the daily newspaper show us the rate of American and foreign singers in the famous musical festivals.

6. The Wall Street Journal is available only in the USA.

7. If a company future looks uninteresting the market price of its stocks will raise to a point where the multiple is high.

8. There are financial tables showing the trading on several different exchanges in listed options.

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

S & P's Composite Index, low, bid (price), asked (price), average, yield, NYSE Composite Index, close

l. The highest price a prospective buyer is prepared to pay at a particular time for a trading unit of a given security.

2. Market value-weighted index which relates all NYSE stocks to an aggregate market value as of December 31, 1965, adjusted for capitalization changes.

3. The price of the final trade of a security at the end of a trading day.

4. Percentage rate of return paid on a common or preferred stock in dividends; rate of return on a bond.

5. The lowest price acceptable to a prospective seller of a given security.

6. Market value-weighted index showing the change in the aggregate market value of 500 stocks relative to the base period 1941 - 43.

7. Bottom price paid for a security over the past year or since trading of the security began.

8. Appropriately weighted and adjusted arithmetic means of selection securities designed to represent market behavior generally or to figure out important segments of the market.

16. Look through the text and then fill the spaces with the words below. Translate the text into Russian.

A market-weighted average, the NYSE Composite, made up of 20 leading stocks, the S & P 500, a price-weighted average, the Dow Jones, Industrial Average (2)

To understand the Major Market Index, it is necessary to be acquainted with ... (1), though now most professionals are likely to focus on ... (2) or ... (3) as measures of the broad market. But... (4) retains much of its fascination and popularity. The Dow isn't ... (5). But the Major Market Index has been constructed to move like the Dow. It is ... (6), 15 of which are also in the Dow.

Like the Dow, the Major Market Index is not ... (7), but ... (8), meaning that the market price of each of the 20 stocks is taken into the calculation without adjustment.