1. SECURITIES: STOCKS & BONDS STOCKS & SHARES (U15) EQUITY FINANCING (part ownership) BONDS (U16) DEBT FINANCING (loans) MARKETS = exchanges Stock MarketsBond Markets (Bourses, Forex/currency markets, Money markets)

2. STOCKS & SHARES (1) 1.Most companies begin as ……………. limited companies. 2.If they want to grow they must ………. capital. 3.One way to obtain capital for growth is to ……….. …………., i.e. apply to the stock exchange to become a public limited comp. 4. Smaller or newer companies usually sell their shares on the ………….……. markets.

3. STOCKS & SHARES (1), Unit 15 1.Most companies begin as private limited companies. 2.If they want to grow they must raise capital. 3.One way to obtain capital for growth is to go public, i.e. apply to the stock exchange to become a public limited company. 4. Smaller or newer companies usually trade their shares on the informal, over-the-counter markets.

4. STOCKS & SHARES (2) 5. Issuing shares for the first time is known as ………… a company (making a ……..) or _ _ _. 6. To guarantee to purchase all the securities at an agreed price on a certain day, if they cannot be sold to the public: …………….. 7. The newly issued shares for expansion are usually first offered to existing share holders. This is known as …………………………….

5. STOCKS & SHARES (2) 5. Issuing shares for the first time is known as floating a company (making a flotation) or IPO. 6. To guarantee to purchase all the securities at an agreed price on a certain day, if they cannot be sold to the public: to underwrite. 7. The newly issued shares for expansion are usually first offered to existing share holders. This is known as rights issue.

6. STOCKS & SHARES (3) 8. …………….. is issuing new shares and offering them to the shareholders instead of paying dividends. 9. Companies that sell stocks on stock exchanges are referred to as ………… or ………. 10. Market price of a share almost never equals its ………………...

7. STOCKS & SHARES (2) 8. Bonus issue is issuing new shares and offering them to the shareholders instead of paying dividends. 9. Companies that sell stocks on the stock exchanges are referred to as quoted or listed. 10. Market price of a share almost never equals its nominal value.

8. Synonyms British English companies shares/stock EQUITIES flotation Annual General Meeting Articles of Association Memorandum of Assoc. authorised share capital ordinary share property American English corporations stocks initial public offering Annual Stockholders M. Bylaws Certificate of Incorporation authorized capital stock common stock real estate

9. Unit 15 1c Questions 1. What are the obligations of publicly-quoted companies? 2. What is an over-the-counter market? What does a company normally do if it wants to raise futher share capital? 3. What does a company normally do if it wishes to raise further share capital? 4. What is a bonus issue? 5. What rights do shareholders have?

10. Unit 15 1d 1 liability 2 creditor 3 bankrupt 4 assets 5 to liquidate 6 liabilities 7 to put up capital 8 venture capital 9 founders 10 premises 11 underwrite 12 dividend 2c 1 mutual fund 2 portfolio 3 stockbroker 4 blue chip 5 defensive stock 6 growth stock 7 market makers 8 institutional investors 9 insider share-dealing