SHAREHOLDERS PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 31. SHAREHOLDERS

 

A Investors Stock markets are measured by stock indexes (or indices), such as the Dow Jones Industrial Average (DJIA) in New York, and the FTSE 100 index (often called the Footsie) in London. These indexes show changes in the average prices of a selected group of important stocks. B Dividends and capital gains Companies that make a profit either pay a dividend to their stockholders, or retain their earnings by keeping the profits in the company, which causes the value of the stocks to rise. Stockholders can then make a capital gain – increase the amount of money they have C Speculators Institutional investors generally keep stocks for a long period, but there are also speculators – people who buy and sell shares rapidly, hoping to make a profit. These include day traders – people who buy stocks and sell them again before the settlement day.   EXERCISES 31.1 Label the graph with words from the box. Look at A opposite to help you. bull market crash bear marker 31.2 Answer the questions. Look as A, B and C opposite to help you. 1 How do the stags make a profit? 2 Why do some investors prefer not to receive dividends? 3 How do you make a profit from a short position? 31.3 Make word combinations using a word or phrase from each box. Some words can be used twice. Then use the correct forms of the word combinations to complete the sentences below. Look at B and C opposite to help you.

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