Ex.8. Fill in the missing prepositions.

When companies are first listed … the Stock Exchange, their shares are issued, or floated, … a price normally determined … the company. Existing companies which are already listed may issue new shares if they need more capital. The issue … new shares is known as the “primary” market.

The “secondary” market is where shares are bought and sold once they have been issued. Prices are determined … the operation … the basic economic laws … supply and demand.

If investors were unable to realise their assets … selling their shares … the secondary market they would be reluctant to invest … companies. … turn, companies would be deprived … a major source … capital. … these reasons there are stock exchanges … most countries … market economies.

(with, in (3), for, of (5), on (2), by (3), at)

 

 

Exercises in Comprehension

 

Ex.1. Answer the following questions:

1. What can be traded in financial centers?

2. What is a commodity market?

3. What is the stock market sensitive to?

4. What do stock exchanges exist for?

5. What do stock exchanges provide?

6. Who are the main operators on the market?

7. Who do market-makers sell to?

8. What are securities?

9. What is a bull market?

10. When do people talk about a bear market?

 

Ex.2. Sum up what you remember about:

a) things traded in financial centres;

b) stock exchanges;

c) market-makers and stockbrokers;

d) securities;

e) bull market and bear market.

 

Grammar Revision

 

Second Conditional Form: If + Past Simple/Continuous, + would +infinitive Use: We use the second conditional: s to talk about an unlikely or imaginary situation and its result If I won the lottery, I’d buy a new car. s in the expression “If I were you, I’d …” to give advice If I were you, I’d retire.