Английский язык. Практический курс для решения бизнес-задач
Шрифт:
delist v – лишать котировки
22. small capitalization (cap) – компания, которая по уровню капитализации на данном рынке считается малой
23. Electronic Communication Network (ECN) – сеть электронных коммуникаций
24. alternative trading system (ATS) – альтернативная торговая система
25. over-the-counter (OTC) market – внебиржевой рынок ценных бумаг
26. pink sheets – список акций и их цен на внебиржевом рынке
27. 10Q form – квартальный
Exercise 1. Answer the following questions.
1. What are the functions of an exchange? 2. How did NYSE evolve over the years? 3. What are the advantages of the agency auction market? 4. What are the benefits of NYSE? 5. How are stocks bought and sold at NYSE? 6. What does market regulation mean in NYSE’s context? 7. What are the key characteristics of NASDAQ? 8. What are ECNs? 9. Why do some individual investors prefer not to buy OTC stocks?
Exercise 2*. Which of the following statements are not correct and why?
1. A stock exchange owns shares of companies listed there. 2. The exchange tracks the flow of orders for each stock, and this flow of supply and demand sets the price of the stock. 3. In an agency auction market the share price is determined by a dealer who buys and sells out of inventory. 4. Investors trading on the NYSE have no protection against abuses. 5. Buyers and sellers at NASDAQ operate the trading floor. 6. Currently, ECNs do not really serve individual investors; they are mostly of interest to institutional investors. 7. Individual investors prefer to buy OTC stocks because of high possible returns.
Exercise 3*. Find terms in the text that match definitions given below and make sentences of your own with each term.
1. an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission
2. an individual or firm that acts as a principal or counterpart to a transaction
3. all information needed regarding the exchange and regulations for a security
4. the ability to meet obligations and if necessary convert assets into cash or its equivalent
5. an electronic quote system providing prices to participants about actively traded common stocks
6. any transaction that is not conducted over an exchange
7. securities trading market for previously issued financial instruments in the primary market
8. a federal agency that regulates the U.S. financial markets and the securities industry
9. the process by which a trade is entered into the books and records of the counterparts to a transaction
Exercise 4*. Fill in the blanks using terms given below.
Policing the Securities Market: An Overview of the SEC
Shortly after the……. crash of 1929, a……. body called the……. was born. Its goal was to restore investor confidence and faith in a financial sector that was notorious for…….. activities……. credit and……… investments. Two significant proposals by the U.S. Congress, the Securities Act of 1933 and the Securities Exchange Act of 1934, led the way to the formation of the SEC and, ultimately, a……. financial……. under government……… The aim of both of these acts was to protect investors from any indiscretions that could arise from:
Questionable……. companies.
Dishonest and unscrupulous individuals dealing in the…….. markets.
The SEC is divided into four main…….. They work together, but have specific areas in which they mandate and ensure……. These departments are Corporate Finance, Market Regulation, Investment Management and Enforcement.
Division of Corporate Finance
This division is responsible for…….. the……. documents that are required to be……. with the SEC by U.S. public companies. Meant to increase……… so that investors are able to make informed decisions, the…….. require companies to provide prudent and truthful disclosure of financial and…….. information, i.e. any information pertaining to a particular business that might be relevant to an investor’s decision to buy, sell or hold the security.
The documents that companies are required to file include the registration statements for public………, quarterly and annual filings (Forms 10-Q and 10-K), annual…….. to shareholders, documents detailing……… and…….. materials sent out to shareholders before……
Division of Market Regulation
This division establishes and maintains…. orderly and efficient markets by regulating the participants in the securities industry. These participants range from the largest clearing corporations and exchanges, which are also known as……., to the various……. firms and investment houses. In short, the Division of Market Regulation establishes the……. of the investment industry.
This division also interprets any proposed changes to existing regulations and reviews any……. over the operations of the securities industry. It maintains constant…….. of market activity to ensure that no policies are being manipulated.
Division of Investment Management
As…….. of the investment management industry, this division ensures the preservation of all rules affecting investment companies and their…….. To make certain that all rules and regulations are being upheld, the SEC requires that all investment companies and federally……… investment advisors file the appropriate documents. More specifically, this division looks at public……. and laws, and makes changes to existing rules if circumstances provide reason to do so.
Division of Enforcement
Working closely with the other three divisions, this group investigates possible……. of securities laws and provides recommendations when further action is needed. Keep in mind that the division of enforcement has only civil enforcement authority; it must cooperate with different………. agencies such as the FBI or local police to bring about…….. charges.
Common violations include………… misrepresentation, deliberate omission of significant information regarding public company filings, market manipulation, violation of……. duties and any related disturbances that affect the smooth operation of the U.S. securities market and the market’s…….