Task 1. Translate the text in writing.

1. Corporations issue stock in order to finance their business activities. This method of raising funds is only available to business firms organized as corporations; it is not available to sole proprietorships and partnerships. The corporation can use the proceeds of a stock offering in a variety of ways. Depending on the type of company, this might involve increasing research and development operations, purchasing new equipment, opening new facilities or improving old ones, or hiring new employees.

2. An alternative to stock financing is debt financing or the sale of bonds, an interest-bearing loan. This alternative is also available to sole proprietorships and partnerships. With the issuance of a bond a company typically promises to make periodic interest payments to the lender or bondholder as well as pay back the amount of the bond when the term of the bond expires. Thus bonds are evidence of loans while stocks are evidence of ownership. Stocks and bonds are collectively known as securities.

3. When a corporation first makes stock available for public purchase, it works with an investment banking firm to arrange an initial public offering (IPO). The investment bank acquires the first issue of stocks from the corporation at a negotiated price.

Task 2. Read the text again and find the word that means.

1. a person who is employed by someone else working for money (salary or wages) (par. 1)

2. printed paper issued by a government or a corporation acknowledging that money has been lent to it and will be paid back with interest (par. 2)

3. document, certificate, etc. showing ownership of property (esp. bonds, stocks and shares) (par. 2)

4. state of being a partner (par. 1)

5. money owed to someone (par. 2)

Task 3. Fill in the gaps with appropriate words:

Bills; transfer; interest rates; customer; services; payments; withdraw; money; profit; charged.

1. Banks perform the main part of the work of transferring money from acustomer to a seller, by operating the system of

payments in the economy.

2. Families keep their savings in the banks, and banks pay theminterest rates on their deposits and give them loans to buy

expensive goods.

3. Commercial organizations, which work at the market and in production, take loans for their needs and conduct allpayments

with buyers and sellers through them.

4. Commercial banks receive and hold deposits, paymoney according to customers' instructions, lend money.

5. A current account usually pays little or no interest, but allows the holder towithdraw his or her cash with no restrictions.

6. Standing orders and direct debits are ways of paying regularbills at regular intervals.

7. Banks make aprofit from the spread or differential between the interest rates they pay on deposit and those they charge on

loans.

8. The prices that producerscharged for food fell by 0.8% in July.

9. Merchant banks provideservices to companies or corporate customers.

10. Nowadays it's possible totransfer money between different accounts using an electronic banking system installed in your

home.

Date: 2015-12-11; view: 1259