24. Investments CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

24. Investments

Make a profit and make a difference The Aware Finance Ethical Investment Fund aims to offer everything you would expect from an ethical investment: capital growth, a competitive yield and the knowledge that your gain isn't at the expense of the environment or exploited workers. Naturally, we only invest in companies that have been thoroughly screened, and fully match up to ethical investment criteria. Yet Aware Finance goes one step further. 20% of the fund is invested in small, unquoted companies developing the next generation of renewable energy technologies. Of course, most of these technologies are in their infancies, and this fund is particularly aimed at investors looking for long-term growth potential. With Aware, the return on your investment isn't just financial. The Neptune Tracker Fund Sometimes the simple things in life are the best. With The Neptune Tracker Fund there are no investment strategies and no fund managers to pay. The fund is invested in the 100 companies that comprise the Financial Times-Stock Exchange 100 Share Index. If the FTSE 100 goes up by 5%, the value of your holding goes up 5%. It's as simple as that. Despite the promises of high growth and high return associated with managed funds, the truth is that in seven out of the last ten years on average tracker funds have equalled or out-performed managed funds. And unlike managed funds, there are no hefty fees to pay. Entry to the fund costs 1.75% of the sum invested, with a tiny 0.5% administration fee payable each year thereafter. Yields can be reinvested in the fund or can be taken as income – the choice is yours. A. Find words in the advertisements which mean the same as the words below. 1 a specific investment h_______________ 2 as good, in financial terms, as others on the market c________________ 3 checked s_______________ 4 give a higher return than o______________ -p______________ 5 income from an investment y ________________ 6 increase in value of a holding c_______________ g_______________ 7 an increase in value over several years l________-t_________ g_________ 8 not listed on a stock exchange u_______________ 9 principles for deciding how to invest i_______________ c_______________ B. Answer the questions. 1 Which fund is probably higher risk? AWARE / NEPTUNE Which fund is likely to have higher fees? AWARE / NEPTUNE Which fund is more suitable for investors needing a reliable yield? AWARE / NEPTUNE Which fund is entirely invested on the stock market? AWARE / NEPTUNE Which fund would you prefer to invest in? AWARE / NEPTUNE 2 3 4 5 C. Match the term with the definition. 1. bond 2. futures contract 3. share option 4. trust fund 5. unit trust 6. bear / bull market a. An agreement to buy commodities, currencies or shares at a fixed price on a fixed date in the future. b. Private investors can buy a small interest in a large fund invested in many companies. c. An investment in which the issuer (often a government) promises to pay back the invested sum plus interest. d. Prices are going down / up. e. A fund which is managed by the trustee(s) for the beneficiary / beneficiaries. A common example is money held in a trust for a child or young person. f. Employees are offered shares in the company at a reduced price. D. Put the words in the spaces in the sentences. blue chip closing price commission commodities downturn financial advisor fixed-interest flotation issue price portfolio public company put some money into share certificates speculate 1 I've decided to __________________ stocks and shares. I bought a five-year __________________ government bond. Unfortunately for investors, there has been a significant __________________ in the market When I bought the bond, I didn't realise that the agent who sold it to me would get a 3% _________. To get advice on personal investments, you can see an independent __________________. 2 3 4 5 6 Shell, British Airways, Sony and Nestlé are __________________ companies. Coffee, cotton, coal and aluminium are __________________. A __________________ is owned by its shareholders, and its share price is quoted on a stock exchange. Shares in Western Gas were launched with an __________________ of 50p per share. The __________________ of Western Gas on the stock exchange was in 1990. 7 8 9 10 11 Yesterday's __________________ for Western Gas was 178p per share, down 2p on the day before. Jason has a __________________ of shares worth about half-a-million pounds. Unfortunately, all Jason's __________________ were destroyed in a fire. Investing is a form of gambling. As the saying goes "You have to __________________ to accumulate". 12 13 14

ANSWER KEY