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L10

Business English 10

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Raul Dominguez
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13 views

L10

Business English 10

Uploaded by

Raul Dominguez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF or read online on Scribd
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government bonds include the German bund, These are al ea ae oe ero considered to be low-risk. Corporate bonds have tw grades, depending on the risk, ie the credit rating of the market instruments, These are explained in turn below ‘ompany Safer corporate bonds are called ‘investment grade’, while high-risk bonds (the company might go nies listed on a stock exchange. hankrupt or default on its repayments) are called ‘high: stocks (= equities) of comp The term ‘shares inchides both stocks and privately held yield bends’ or unk bond stakes in small firms that are not publicly traded. A ‘basket Bonds can be traded on the open market ~ they don’t have of stocks can be picked by a fund manager and put together into a mutual fund (UK: unit trust). Funds may to be held by the original buyer until maturity. and down over the te invest in particular countries, or different sectors of the particular, their price goe market, or may ‘track’ (= exactly follow) a particular index, _the loan according t Each fund will have an investment objective, normally Inflation (the interest repaid on a bond is fixed will reduce the bond's fin either regular income (from share dividends), or long-term apital growth (from an increase in the share price), or a alue), balance between th: are iss ticular currency’ their value changes as tha ical location, like the New York currency fluctuates). Wall Street. Other times there is no A third type of market, used by investors with spare cas SDAQ is an electronic exchange. A small ailable for a short time period only (under a year), i stocks can be brought together to mak alled the money market, Investors can buy T-bills from the ind ple, the Dow Jones publishin US government, ‘certificates of deposit’ from a bank, Co es ‘the De ndex of 30 la ‘commercial paper’ from a company: These are all sho companies), and Standard and Poor's ~ a credit ratings term loans that pay interes. The foreign exchange (= forex /currency) market is big Jown in price? When is a stock Why do stocks go up than all the securities markets combined (around $2 eat day). Here, dealers buy and sell currency pairs such as EUR/USD (~ euro against the dollar) Players include and performance Commercial banks (representing both themselves and pnical analysis: usi pret aare Central banks (representing governments trying t raed panne porn Pension fu The bond market is about ten times bigger than the stock There is a huge amount of speculation in this market. Ifa oe eee ea eae ena Te nds; international trade; inflation (because of pay buys it ( the bondholder). The original amount (~ th or imported goods) etc. A lot of dealing is done to p ncipal) is then paid back over a fixed period of time ; wedge) such risk maturity /the term of the loan). And of course the inally, there are the commodity markets. Here, dealer dholder also receives interest (= the coupon). The bond de the future price of such things ange Metals: gold, silver, ce government bonds include the 30 year T-bond

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