1. 商务英语听说
Unit 12
Business English Listening & Speaking

2. Terms
Give the full names of the following abbreviations and their equivalents.
1) IPO initial public offering 首次公开招股；首次公开发行
2) NYSE New York Stock Exchange 纽约证券交易所
3) NASDAQ National Association of Securities Dealers Automatic Quotation System
全美证券商自动报价系统
4) OTC over the counter 场外交易
5) SEC Securities and Exchange Commission 证券交易委员会
6) AMEX (ASE) American Stock Exchange 美国证券交易所
7) EPS earnings per share 每股收益
8) CSRC China Securities Regulatory Commission 中国证券监督委员会
9) P/E ratio price / earnings ratio 市盈率
10) ESOP employee stock ownership plan 雇工股权计划

3. Terms Give the English equivalents of the following terms.
1) 道琼斯工业平均指数 Dow Jones Industrial Average
2) 日经指数 Nikkei Average/Index
3) 金融时报指数（富时100指数） Financial Times Industrial Ordinary Index
4) 恒生指数 Hang Seng Index
5) 标准普尔500种股票指数 Standard & Poor’s 500 Stock Index
6) 上海综合指数 Shanghai Composite Index
7)一级市场 primary market
8)二级市场 secondary market
熊市 bear market
牛市 bull market
垃圾债券 junk bond
零息债券 zero-coupon bond
蓝筹股 blue chip stock
上海证券交易所 Shanghai Stock Exchange

4. Terms Definite the following terms. Portfolio 投资组合
The entire collection of investments belonging to an investor or held by a financial institution.
Stockholder 股东；股票持有人
A holder of one or more shares in a company.
Dividend 股息；分红
Distribution of profit to owners of a corporation.
Bond 债券
One type of long-term debt, frequently issued to the public.
Capital stock 股本；股金总额
Ownership shares of a corporation authorized by its articles of association.

5. Terms Definite the following terms. Maturity date 到期日
The date on which a debt or a note becomes due for payment or repayment.
Face value 票面价值
Amount due at maturity from a note
Security 证券
Any kind of certificate showing ownership of property.
Stockbroker 证券股票经纪人
An agent who is employed by his clients to buy and sell shares for a commission.
Coupon rate 票面利率；息票率
The interest rate paid on a fixed-interest security.

6. Terms Explain the following terms.
A shares: or RMB common shares, refer to the stocks denominated in RMB, issued by Chinese domestic companies, subscribed to and traded in RMB by domestic institutions, organizations or individuals. (including those investors from Taiwan, Hong Kong and Macao).
B shares: or RMB special shares, refer to the stocks denominated in RMB,
subscribed to and traded in foreign currency (US dollar in Shanghai and Hong Kong dollar in Shenzhen). They are listed in the domestic stock exchange, that is, the Shanghai Stock Exchange and Shenzhen Stock Exchange.
H shares: refer to those shares floated and listed on the Hong Kong Stock Exchange. The highest-rated H shares are known as red chips.

7. Terms Explain the following terms.
C shares: refer to those shares denominated and payable in either Renminbi or foreign currency, held wholly by state-owned enterprises, which are not publicly traded.
N shares: These are shares floated and listed on the New York Stock Exchange.
L shares: These are Chinese companies listed on the London Stock Exchange.
Red chips: There are two types of these: (1) Mainland Chinese companies with Hong Kong subsidiaries; and (2) Hong Kong companies that do the bulk of their business with mainland China.

8. Terms Explain the following terms.
Mortgage bonds: bonds issued by corporations and secured by a lien on specific assets.
Debenture bonds: bonds issued by corporations without assets as the collateral.
Convertible bonds: bonds that may be converted into common stocks.
Junk bonds: debt securities issued by companies with higher than normal credit risk. Considered as “non-investment grade” bonds, these securities ordinarily yield a higher rate of interest to compensate for the additional risk.

9. 1 Listen to the passage and answer the questions. P227-228
1. If corporations need short-term funds, what do they usually do?
They usually borrow from banks.
2. How can corporations raise long-term capital?
They may raise long-term capital by issuing stocks or selling bonds to the public.
3. What are the differences between primary market and secondary market ?
The primary stock market is for newly issued shares, while the secondary stock market is where investors buy or sell existing stocks.

10. 1 Listen to the passage and answer the questions. P227-228
4. Without the secondary market, what would happen to the corporations issuing new securities? Why?
They would have to pay higher returns to the investors. This is because investors would have trouble finding a resale market for their stocks and bonds.
5. Why do investors buy bonds?
Investors buy bonds because they provide relatively safe and stable income.
6. What is the difference between stocks and bonds?
Stocks are equity or ownership securities, while bonds are debt securities.
7. What does it mean by “asset allocation” ?
Asset allocation refers to finding the right mix of investment instruments, for various investment purposes and degrees of risk.

11. 1 Listen to the passage and decide them true/ false. P227-228
Transactions in the secondary market provide the issuing corporation with additional funds.
The vast majority of bonds are traded on the stock exchange.
The bond market is bigger than the stock market.
The bondholders have the right to vote.
The bondholders’ interest payments must be in full before shareholders in the same company can receive any dividends. F F T F T

12. 1 Listen to the passage and fill in the blanks. P227-228
When the stocks of a corporation are owned by the public, they are said to be _______________, which can be ____________ to other investors in the stock market. The stock market can be subdivided into ___________________ and __________________. Stock brokerage firms buy the new securities at ______________ prices from the issuing corporation and then resell them to the investing public at _________ prices.
public held
traded or sold
the primary market
the secondary market
wholesale
premium

13. 1 Listen to the passage and fill in the blanks. P227-228
About _________ stock issues are now traded on stock exchange throughout the United States. They are called ___________________. And about ___________ other issues are traded _____________. The stock market also includes thousands of different _______________ and thousands of different ______________________. The New York Stock Exchange (NYSE) handles an average daily ________________ of over _______ shares.
4,000
listed securities
25,000
over the counter
mutual funds
stock options to purchase stocks
trading volume
200 million

14. Script P 1
To meet their short-term cash requirements corporations usually borrow from banks. But when corporations need long-term financing, they may sell ownership interests in the company to the public, or borrow from the public by selling bonds. Stocks exist to enable companies that are in need of long-term financing to sell pieces of the business as shares in exchange for cash. This is the major method of raising capital other than by issuing bonds. When the stocks of these corporations are owned by the public, they are said to be publicly held. These publicly held shares can be traded or sold to other investors in the stock market. And in this case, they are known to be liquid, that is, they are readily converted into cash.

15. Script P 1
There are two major subdivisions to the stock market: the primary market and the secondary market. The primary stock market is for the newly issued shares, which are sold by the issuing corporation to the investing public. Stock brokerage firms usually serve as intermediaries in these transactions. They buy the new securities at wholesale prices from the issuing corporation and then resell them to the investing public at premium prices. The secondary stock market is where investors buy or sell existing stocks. Transactions in this market do not provide the issuing corporation with additional funds, but they increase the liquidity of the stocks already issued and outstanding. Without this liquidity, corporations issuing new securities would have to pay higher returns because investors would have trouble finding a resale market for their stocks and bonds.

16. Script P 1
About 4,000 stock issues are now traded on stock exchanges throughout the United States. They are called listed securities. And about 25,000 other issues are traded over the counter. Usually, more established companies choose to be listed on one or more exchanges, while the over-the-counter market (OTC) is where newer and smaller companies are likely to be traded. The stock market also includes thousands of different mutual funds and thousands of different options to purchase stocks. All mutual funds and some stock options trade OTC. The New York Stock Exchange (NYSE) handles an average daily trading volume of over 200 million shares.

17. Script P 1
Investors generally purchase bonds because they provide relatively safe and stable income. Bonds are priced differently from stocks, and the vast majority are traded OTC. The bond market is even bigger than the stock market. Stocks are equity or ownership securities; bonds are debt securities. Most investment portfolios contain both stocks and bonds. Finding the right mix of these investment instruments, for various investment purposes and degrees of risk, is known as asset allocation. The bondholder usually receives interest payments rather than dividends. He or she does not have the right to vote, and is promised that, at maturity, the face value will be repaid. Because a bond is a fixed-income, senior security, its interest payments must be in full before shareholders in that same company can receive any dividends.

18. Script P 2
China’s stocks closed mixed in sluggish trade yesterday as buying interest weakened following a three-day market rise and ahead of a huge bank’s initial public offering.
The Shanghai Composite Index gained points to 1, , while the turnover shrank to billion Yuan (US$1.78 billion). Shenzhen’s index climbed 0.30 points to 3, yesterday. Its turnover stood at 9.81 billion Yuan (US$1.18 billion).
Profit-taking pushed down the Shanghai B-share index by 0.63 per cent to points with a turnover of US$26.17 million, while the Shenzhen index fell 0.9 per cent to on a small turnover of HK$ million (US$18.67 million).

19. Script P 2
Turnover on the hard currency stock markets, open to foreigners and retail Chinese investors, shrank by about 45 per cent on both bourses. B shares, open to foreigners and retail Chinese investors, had risen about 2.7 per cent over the past three days on hopes of government policy support.
Domestic A shares ended a shade higher, but turnover also declined as follow-through buying fizzled out after the indices rose nearly 4 per cent in the past three days.

20. Goodbye