Ex.1. Answer the following questions

1. What do businesses need financial reserves for?

2. What do companies need working capital for?

3. What are the four 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?

Ex.2. Sum up what you remember about:

a) financial reserves;

b) retained profit;

c) borrowing;

d) share flotations;

e) grants and loans.

Grammar Revision

First Conditional: Form: if + Present Simple/Continuous, + will + infinitive Use: We use the first conditional: s to talk about a likely situation and its probable result in the future. If the weather keeps warm, we’ll go to the river. s to give advice, threats and to make promises. If I have time, I’ll help you.

Ex.1. Finish these sentences using the first conditional.

1. If he washes my car, … .

2. If you smoke, … .

3. If you need a lot of money, … .

4. If you fail your test in math, … .

5. If she loses her weight, … .

6. If you phone me tonight, … .

7. If I go to the party, … .

8. If it rains, … .

9. If I eat a lot of sweets, … .

10. If we get this loan, … .

11. If you skip classes, … .

12. If you buy a new flat, … .

13. If inflation rises, … .

14. If I can afford it, … .

15. If you feel underpaid … .

Ex.2. Put the verbs in brackets into the correct form.

1. If you (see) Mary, tell her I have a message for her.

2. If he (refuse) to help, I’ll have to manage without him.

3. What will we do if he (not meet) us?

4. If I (get) a work permit, I’ll stay for another three weeks.

5. If you (help) us, the job will only take an hour.

6. If I find his passport, I (phone) him at once.

7. If you leave your car unlocked, someone (steal) it.

8. Unless she (sell) more, she won’t get much commission.

9. If I lend you $ 100, when you (repay) me?

10. If we (make) share issues this month, we’ll raise our finance.

11. If you manage to get cheap loans, the firm (stay) in business.

12. If we (need) extra capital, we’ll apply at the bank for a loan.

13. If you (be) in difficulties with money, I’ll help you by all means.

14. If I (finish) this work before six, I'll let you know.

Ex.3. Translate into English:

1. Якщо я попрошу його, він допоможе нам одержати цю позику.

2. Вони обговорять це питання, якщо у них буде вільний час.

3. Якщо нас запросять на ці переговори, ми будемо підтримувати вашу стратегію.

4. Ми одержимо цю інформацію вчасно, якщо він відправить її електронною поштою.

5. Якщо він забуде свою обіцянку, я нагадаю йому.

6. Якщо прибуток не буде розподілений між акціонерами, вони будуть не задоволені.

7. Якщо ми одержимо цю довгострокову оренду, то відкриємо ще один гіпермаркет в цьому місті.

8. Ми зможемо купити ці нові приміщення, якщо у фірми буде додатковий капітал.

9. Якщо наш вчений одержить грант, він зможе закінчити дослідження цієї важливої для всього людства проблеми.

10. Якщо я куплю цей комп’ютер у розстрочку, то я зможу заощадити гроші на подорож до Єгипту.

Speech and Discussion

Ex.1. Define the following terms:

s retained profit;

s shareholders;

s share offering.

Ex.2. Interview the financial manager in a large corporation. Ask him about the ways his corporation obtains capital.

Ex.3. Discuss with your groupmates which way of obtaining capital is more suitable for a small firm. Why?

Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them.

1. He gave me one of his sandwiches, and I gave him some of my candy; share and share alike.

2. He stole the lion’s share of the company’s profit.

3. In my book, you don’t complain about the staff to the boss until you have discussed it with them first.

4. Bob lies for the sake of lying. It has become second nature to him.

5. You’ll give us a bad name if you talk to our customers like that!

Ex.5. Comment on the following:

“Finance is, as it were, the stomach of the country, from which all the other organs take their tone.”

(W. Gladstone)

Lesson 3

Text: Financial Centres

Grammar: Second Conditional

Terms to remember:

trade (v)	™	торгувати (чимсь- in;)
stock market	™	фондова біржа
commodity market	™	товарна біржа
foreign exchange (forex) market	™	валютна біржа
interest rate	™	позиковий процент/відсоток
raise capital (v)	™	збільшувати капітал, залучати капітал
securities	™	цінні папери
market-maker	™	дилер, який проводить операції з цінними паперами
stockbroker	™	біржовий маклер/брокер
bond	™	облігація
bull market	™	ринок акцій, на якому підвищуються ціни; ринок “биків”
bear market	™	ринок акцій, на якому знижуються ціни; ринок “ведмедів”

Financial Centres

Financial centres bring together investors and the businesses that need their investment.

Things traded in financial centres include: securities on the stock markets; commodities such as cereals, coffee and precious metals on the commodity markets, currencies on the foreign exchange or forex markets.

The stock market is the financial centre of any country. It reflects any change in the economy. It is sensitive to interest rates, inflation and political events. In a very real sense, it has its fingers on the pulse of the entire world.

The stock exchanges exist to allow investors to buy and sell shares, and companies to raise capital. They also provide a market for government loans and securities. On the market, the main operators are the market-makers who trade in a group of shares, and stockbrokers who act as agents for their clients. Market-makers sell to stockbrokers.

A share (BrE) or stock (AmE) is any of the equal parts into which the capital of a company is divided. Securities are shares and bonds (official papers given by a company or the government, to prove that you have lent them money and that they will pay it back with interest).

When prices in a stock market or currency market are rising people talk about a bull market. When prices are falling people talk about a bear market.

Exercises in Word Study

Ex.1. Form nouns from the following verbs:

reflect, exist, invest, govern, operate, act, divide, prove.

Ex.2. Give the English for:

торгувати акціями; фондова біржа; товарна біржа; валютна біржа; дорогоцінні метали; валюта; урядові позики та цінні папери; біржовий маклер; капітал компанії; облігації; позиковий відсоток; ринок “биків”; ринок “ведмедів”.

Ex.3. Match words from list A with words from list B that have a similar meaning:

A	B
goods change sensitive entire allow foreign exchange securities market prove	confirm whole permit foreign currency stock exchange alteration perceptive commodities

Ex.4. Find suitable opposites to the following words:

to rise, to borrow, to include, partial, to unite, to prove.

Ex.5. Match the nouns in the left-hand column with the verbs in the right-hand column:

securities commodities bonds

pay off redeem retire deal in issue trade in make advertise sell

Ex.6. Look at the words and phrases in the box. Match them with the correct definition from the list below: