STOCKS AND SHARES 1 PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 29. STOCKS AND SHARES 1

 

A Stocks, shares and equities. Stocks and shares are certificates representing part ownership of a company. The people who own are called stockholders and shareholders. In Britain, stock is also used to refer to all kinds of securities, including government bonds. B Going public Go public: change from a private company to a public limited company (PLC) by selling shares to outside investors for the first time (with a fotation). C Ordinary and preference shares If a company has only one type of share these are ordinary shares. Some companies also have preference shares whose holders receive a fixed dividend (e.g. 5% of the shares’ nominal value)   EXERCISES 29.1 Match the words in the box with the definitions below. Look at A, B and C opposite to help you. bankrupt flotation liquidation ordinary shares stock exchange going public investors prospectus preference shares to underwrite   1 a document describing a company and offering stocks for sale 2 a market on which companies’ stocks are traded 3 buyers of stocks 29.2 Are the following statements true or false? Find reasons for your answers in A, B and C opposite. 1 New companies can apply to join a stock exchange. 2 Investment banks sometimes have to buy some of the stocks in an IPO. 29.3 Make word combinations using a word or phrase from each box. Then use the correct forms of the word combinations to complete the sentences below. Look at A, B and C opposite to help you.

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