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Tiếng anh chuyên ngành kế toán bài 5
Unit 5: Financial markets FINANCIAL MARKETS In this unit, we will learn language and knowledge related to the main types of financial markets, the main characters of each type and the factors that affect the prices on financial markets Trong này, học ngôn ngữ kiến thức liên quan đến loại thị trường tài bản, đặc điểm loại nhân tố có ảnh hưởng tới giá thị trường tài UNIT OBJECTIVES - MỤC TIÊU • Provide students with the language and knowledge related to the main types of financial markets Cung cấp cho sinh viên vốn ngôn ngữ kiến thức liên quan đến loại hình thị trường tài • Provide students with the language and method to write an argumentative essay Cung cấp cho học viên ngôn ngữ phương pháp viết bình luận • At the end of this unit, students will be able to talk and write about the main types of financial markets, the main characters of each type and factors that affect the prices on financial markets Sau kết thúc học này, sinh viên nói viết loại hình thị trường tài bản, đặc điểm loại nhân tố ảnh hưởng đến giá thị trường tài DURATION (9 periods) - THỜI LƯỢNG HỌC (9 TIẾT) 65 Unit 5: Financial markets Match each explanation in column A with its term in column B The suggested time for completing the exercise is 10 minutes Column A Column B Having a responsibility or an obligation to something, e.g A Assets to pay a debt A person or an organization to whom money is owed (for B Bankrupt goods or services rendered, or as repayment of loan) To be insolvent: unable to pay debts C Creditor Everything of value owned by a business that can be used to D Dividend produce goods, pay liabilities, and so on to sell at the possessions of a bankrupt business To sell at the possessions of a bankrupt business E Founders Money that a company will have to pay to someone else (bills, F Liabilities taxes, debts, interest and mortgage payments, etc.) To provide money for a company or other project G Liability Money invested in a possibly risky new business H Premises The people who begin a new company I To liquidate 10 The place in which a company does business: an office, shop, J To put up capital workshop, factory, warehouse, and so on to guarantee to buy an entire new share issue, if no one else wants it 11 To guarantee to buy an entire new share issue, if no one else K Underwrite wants it 12 A proportion of the annual profits of a limited company, paid L Venture capital to shareholders 66 Unit 5: Financial markets Read the text and the exercises below The suggested time for reading the text and completing the exercises is 30 minutes HOW INVESTMENT TAKES PLACE which are normally offered first to existing How investment takes place shareholders at less than their market price financial market is a place where firms This is known as a rights issue Companies and individuals enter into contracts to sometimes also choose to capitalize part of sell or buy a specific product such as a stock, their profit, i.e turn it into capital, by issuing bond, or futures contract Buyers seek to buy new shares to shareholders instead of paying at the lowest available price and sellers seek dividends This is known as a bonus issue to sell at the highest available price There are a number of different kinds of financial Buying a share gives its holder part of the markets, depending on what you want to ownership of a company Shares generally buy or sell, but all financial markets employ entitle their owners to vote at a company’s Annual General Meeting (GB) or Annual professional people and are regulated Meeting of Stockholders (US) , and to receive Stock markets a proportion of distributed profits in the form tock markets grew out of small meetings of a dividend – or to receive part of the of people who wanted to buy and sell their stocks These men realized it was much easier to make trades if they were all in the same place at the same time Today people from all over the world use stock markets to buy and sell shares in thousands of different companies A S The act of issuing shares or stocks on the stock market for the first time is known as floating a company (making a flotation) In America, new issues of stock must be registered with the U.S Securities and Exchange Commission and in some cases with the State of New York A prospectus, giving details about a company's operation and the stock to be issued is printed and distributed to interested parties Companies generally use an investment bank to underwrite the issue, i.e to guarantee to purchase all the securities at an agreed price on a certain day, if they cannot be sold to the public company’s residual value if it goes into liquidation Shareholders can sell their shares on the secondary market at any time, but the market price of a share – the price quoted at any given time on the stock exchange, which reflects (more or less) how well or badly the company is doing – may differ radically from its nominal value Companies wishing to raise more money for expansion can sometimes issue new shares, 67 Unit 5: Financial markets Futures markets F utures markets provide a way for business to manage price risks Buyers can obtain protection against rising prices and sellers can obtain protection against declining prices through futures contracts For example, in spring, farmer Jones planted 100 acres of soybeans and he anticipates that in September he will harvest 5,000 bushels He is concerned about what the prices of soybeans will be in September, if the price falls he will lose money To avoid this risk, farmer Jones has his futures broker sell a contract for 5,000 bushels of soybeans for September at the current price In this way the farmer locks in his September selling price If the price is higher in September, the farmer will not make as much profit, but if the price has fallen, he will come out ahead This process of obtaining price protection is called hedging To realize a profit, it is necessary to be right about both the direction and the timing of a price change Even experienced investors rarely invest more than a small portion of a total investment portfolio in futures contracts In fact, in the last few years a number of large and sophisticated investors have made the front pages of newspapers for losing all of their money on one kind of risky futures investment called a "derivative" OTC-traded stocks I n the U.S., over-the-counter (OTC) trading in stocks is carried out by market makers that make markets in OTC Bulletin Board OTC stocks are not listed or traded on any stock exchange They are traditionally those of smaller companies that not meet the listing requirements of the New York Stock Exchange or the American Stock Exchange The OTC market presents investment opportunities for informed investors, but also has a high degree of risk Many OTC issuers are small companies with limited operating histories or are economically distressed Investments in legitimate OTC companies can often lead to the complete loss of the in vestment Investors should avoid the OTC market unless they can afford a complete loss of their investment In recent years, however, many companies that qualify for listing have chosen to remain with over-the-counter trading, because they feel that the system of multiple trading by many dealers is preferable to the centralized trading approach of the New York Stock Exchange, where all trading in a stock has to go through the exchange specialist in that stock The rules of over-the-counter stock trading are written and enforced largely by the National Association of Securities Dealers (NASD) , a self-regulatory group Prices of over-the-counter stocks are published in daily newspapers, with the National Market System stocks listed separately from the rest of the over-the-counter market Other over-the-counter markets include those for government and municipal bonds Source: From How Financial Markets Work, Resource Center, Investor Protection Bureau, US, http://www.oag.state.ny.us/ 68 Unit 5: Financial markets 2.1 According to text A, which information below is true (T), false (F) or NG (not given)? Questions T/F/NG Financial markets are classified according to the kinds of items/things sold and bought on each of them Many people use the stock markets to make profits of their stocks/ shares Before issuing stocks/ shares, companies often hire professional people to write the prospectus A reliable investment bank is often asked to underwrite the issue of stocks/ shares of a company In order to raise capital, companies use all of their profits to pay dividends Owning stocks/ shares of a company gives the owner only the dividend Futures markets are to protect buyers and sellers against dramatic changes in prices To make profit on futures markets, an investor should have good sense of prediction Companies listed on OTC market are always well-performed ones 10 Investors prefer the OTC market as they are less formal and more profitable 2.2 Use the words provided (in the box) below to fill in the blanks a commodities b financial securities c market economy d specialized e liquidity f dividends g general h intermediaries i issues a receipt j raising of capital In economics, a financial market is a mechanism that allows people to easily buy and sell (1) (such as stocks and bonds), _(2) (such as precious metals or agricultural goods), and other fungible items Financial markets have evolved significantly over several hundred years and are undergoing constant innovation to improve _(3) _ Both (4) _ markets (where many commodities are traded) and _(5) markets (where only one commodity is traded) exist Markets work by placing many interested buyers and sellers in one "place", thus making it easier for them to find each other An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a (6) _ in contrast either to a command economy or to a non-market economy such as a gift economy 69 Unit 5: Financial markets In finance, financial markets facilitate the (7) _ (in the capital markets); the transfer of risk (in the derivatives markets); or International trade (in the currency markets) and are used to match those who want capital to those who have it Typically a borrower (8) _ to the lender promising to pay back the capital These receipts are securities which may be freely bought or sold In return for lending money to the borrower, the lender will expect some compensation in the form of interest or _(9) Without financial markets, borrowers would have difficulty finding lenders themselves (10) _ such as banks help in this process Banks take deposits from those who have money to save They can then lend money from this pool of deposited money to those who seek to borrow Banks popularly lend money in the form of loans and mortgages Read the text and the exercises below The suggested time for reading the text and completing the exercises is 30 minutes FACTORS WHICH AFFECT MARKETS Factors which affect markets p or down? Financial markets can be affected by a number of factors which includes both subjective and objective ones U Actions of investors: Individual, institutional and mutual fund investors all affect the prices of stocks, bonds, and futures, by their actions For example, if a large number of people want to buy a certain stock its price will go up, just as if many people were bidding on an item at an auction Business conditions: Both the condition of an individual business and the strength of the industry it is in will effect the price of its stock Profits earned, volume of sales, and even the time of year will all affect how much an investor wants to own a stock Government actions: The government makes all kinds of decisions that affect both how much an individual stock may be worth (new regulations on a business) and what sort of instruments people want to be investing in The government interest rates, tax rates, trade policy and budget deficits all have an impact on prices Economic Indicators: General trends that signal changes in the economy are watched closely by investors to predict what is going to happen next Indicators include the Gross National Product, the inflation rate (how quickly prices are rising), the budget deficit (how much the government is spending) and the unemployment rate These indicators point to changes in the way ordinary people spend their money and how the economy is likely to perform International events: Events around the world, such as changes in currency values, trade barriers, wars, natural disasters, and changes in governments, all change how people think about the value of different investments and about how they should invest in the future Today, investments can be purchased around the clock When the market opens in New York, the Tokyo market has just closed and the London market is half way through its trading day When prices on one market change all other markets are affected 70 Unit 5: Financial markets The bull and the bear A bull market and a bear market are terms used to describe the general market trends A bull market is a period during which stock prices are generally rising A bear market is a period when stock prices are generally falling Each of these markets is fueled by investors' perceptions of where the economy and the market are going If investors feel that they are in a bull market, they will feel confident investing, adding to the growth of the market However, if investors think that the market is falling they will sell stock at lower prices, continuing the bear market These trends may quickly change Source: From How Financial Markets Work, Resource Center, Investor Protection Bureau, US, http://www.oag.state.ny.us/ 2.3 Read the text and answer the following questions What will happen if the number of buyers for a certain stock suddenly increases? If the EPS (earning per share) of a company is positively increasing, what will investors do? What are affected by government’s decisions? Which indicators of the economy investors closely watch? What the economic indicators show? What is the effect of changes in international events? When investments take place? How are stock prices like in a bull market? What happens if investors are in a bull market? 10 Does the period of a bull market or bear market last long? 3.1 Listen to a radio broadcast about the stock market TWICE and answer the questions below How does an English dictionary explain the phrase “to sell a bear”? What are investors always concerned about? What will happen when a company goes belly up? What investors want from a company whose stocks they own? What does “windfall” mean? 71 Unit 5: Financial markets 3.2 Listen to the radio broadcast ONCE again and fill in the blanks below Stock Market: The Business of Investing Bells sound Lighted messages appear Men and women work at computers They talk on the telephone At times they shout and run around This noisy place is a (1) Here expert salespeople called (2) _ buy and sell shares of companies The shares are known as stocks People who own stock in a company, own (3) _ People pay brokers to buy and sell stocks for them If a company earns money, its stock (4) _ in value If the company does not earn money, the stock (5) in value Brokers and investors carefully watch for any changes on the (6) That is the name given to a list of stocks sold on the New York Stock Exchange Investors and brokers watch the Big Board to see if the stock market is a (7) or a (8) In a bear market, prices go down In a bull market, prices go up Investors in a bear market promise to sell a stock in the future (9) But the investor does not own the stock yet He or she waits to buy it when the _(10) 4.1 Complete the passage below, using words from the box The suggested time for completing the exercise is 10 minutes borrow finance own raise capital control debt interest loan shares If you (1)………… a business, the time often comes when you wish to expand it To-do so, you will need extra (2) ………… one way to get this is to (3) ……… money from a bank The banks make a (4)……………to you, but you pay (5)…………… one the money it lands Another way is to ask the bank for an overdraft If it agrees to give you one, you can the draw out money up to a certain limit You may, however, not want to owe money to the bank You prefer not to be in (6)…………… In that case, you could (7)………… money by asking people to invest in your business In return for their investment, you would offer them (8)……… … in your business Finally, if you need a lot of money to (9) …… …… Expansion, you may decide to go public When you this, you usually lose some (10)………… over your company 72 Unit 5: Financial markets 4.2 Choose the most suitable words to fill in the blanks of the following sentences The suggested time for completing this exercise is minutes Offering shares to the public for the first time is called a company A loading B uploading C floating A company offering shares usually uses a merchant bank to _ the issue A guarantee B underwrite C sponsor The major British companies are on the London Stock Exchange A quoted B posted C uploaded The price of a futures contract is determined the contract is made A before B at the moment C after The value written on a share is its value A nominal B normal C norm American corporations with large amounts of cash can spend it by _ their own shares A selling B issuing C buying The majority of bonds has a rate of interest A fixed B flexible C floating People who buy securities expect their price to rise so they can resell them before the next settlement days are known as A bulls 5.1 B bears C dark Individual work Based on the information in the two texts above, answer the following questions in your own words What is a financial market? How is a company floated? What is the advantage of futures markets? What is the characteristic of OTC markets? What factors affect financial markets? 5.2 Pair work or group work Work with your partner(s) and discuss the following question If you possess a large amount of money, what are the advantages and disadvantages of the following? 73 Unit 5: Financial markets Buying a Van Gogh painting Put it under the mattress Buying bond pulting it in a bank b u y i n g Buying shares g o l d pe investing in pro rty or real esta te buying a lot tery ticket taking all your money to Las Vegas 74 Unit 5: Financial markets 6.1 Writing an argumentative essay A Steps in writing an argumentative essay - Identify your position: clearly state that you agree or disagree or maybe both agree with this point and disagree with another point - Brainstorm ideas to support your opinion - Arrange your ideas into a logical order and put them in an outline - Write the first draft based on the structure of your outline -Read your first draft again, check for the unity and coherence of your writing You can change the order of ideas if necessary, or put in some more examples if it needs, or cross out irrelevant sentences - Write the second draft - Edit your second draft: check all the spelling and grammatical mistakes… - Now you can have your final draft B Language for writing Expressing your opinion - I agree/ disagree/ go along/ not go along with the idea that… - I support the idea that… - I am in favor of the idea of V-ing/ the idea that … - In my opinion/ view, … - I firmly believe that… - It is evident that…/ No one can deny that… - Personally, I think that… - There is no doubt that… Expressing summary - To sum up/ In summary, … - In short/ In brief,… - I have come to the conclusion that… 6.2 Writing practice Experts say investors should put all their money in only one kind of stock and shouldn’t spread it over an investment portfolio (several kinds of stock) Do you agree or disagree with this statement? Use specific reasons and examples to write an essay to answer this question The suggested time for completing the exercise is 45 minutes 75 Unit 5: Financial markets English terms Vietnamese equivalents A - A bear market (n) - Thị trường giá giảm (do đầu cơ…) - A bonus issue (n) - Sự phân phát cổ phần vơ phí - A bull market (n) - Thị trường giá tăng (trong giá chứng khốn hàng hóa có khuynh hướng tăng cao mua vào nhiều, bán ít) - A prospectus (n) - Cáo bạch, tờ thuyết minh gọi cổ phần B - Budget deficit (n) - Thâm hụt ngân sách D - Dividend (n) - Cổ tức F - Futures contract (n) - Hợp đồng (hàng hóa) kỳ hạn G - Gross National Product (n) (GNP) - Tổng sản phẩm quốc dân I - Issuing shares/ floating a company (v) - Phát hành cổ phiếu N - Nominal value (n) 76 - Giá trị danh nghĩa ... write an essay to answer this question The suggested time for completing the exercise is 45 minutes 75 Unit 5: Financial markets English terms Vietnamese equivalents A - A bear market (n) - Thị trường... proportion of the annual profits of a limited company, paid L Venture capital to shareholders 66 Unit 5: Financial markets Read the text and the exercises below The suggested time for reading the text... value Companies wishing to raise more money for expansion can sometimes issue new shares, 67 Unit 5: Financial markets Futures markets F utures markets provide a way for business to manage price
