B. Read the text below and find answers to the following questions.

1) What does the term “exchange” mean? What types of exchanges do you know?

2) Do Commodity Exchanges deal in all kinds of commodities? How are the goods bought and sold at Commodity Exchanges?

3) What are the main factors governing prices at the exchanges?

4) What is the main purpose of the stock market?

5) What kind of products are traded on Stock Exchanges?

6) Who are the participants of the Stock Exchange?

7) What is necessary for a company to be admitted to the Stock Exchange?

8) What basic types of securities are listed and traded on the Stock Exchange?

Exchange is the marketplace for buying and selling both the securities and commodities. The way in which an exchange is organized and operates is determined by the type of dealings that take place every trading day. According to this there are two main types of exchanges: the Commodity Exchange and the Stock Exchange.

Commodity Exchange is the marketplace where goods are bought and sold according to grades or standards and on the basis of standard contract terms. Commodity Exchanges usually deal in raw materials and some items of produce, such as cotton, wheat, vegetable oils etc., as these goods can be accurately graded and the grades practically remain unchanged every year. And Commodity Exchanges are called accordingly: the Wheat Exchange, the Metal Exchange and so on. Prices at these exchanges are determined by a complex interaction of factors. It may be said that the main factors governing prices are the interaction of supply and demand, the quality of the goods offered, the terms of contracts.

Stock Exchange is the marketplace where listed securities can be traded efficiently. Most free economies have stock markets which provide companies with a means of raising capital from investors in order to finance their businesses. They provide a wide variety of investment products to meet the varying needs and goals of the investing public.

Stock Exchange brings together those wanting to raise capital (whether industry or government) with those who wish to invest. It is made up of a broad spectrum of participants including listed companies, individual investors, institutional investors, securities firms and dealers with assigned responsibility.

The most famous and oldest Stock Exchanges that have a long history are the London Stock Exchange, the NYSE (New York Stock Exchange) and the Tokyo Stock Exchange. Each year many domestic and overseas companies turn to them to raise capital for their businesses or to have their shares more widely traded. The stocks of the largest and best-known companies are listed on these Stock Exchanges.

It costs money to become an Exchange member. On the NYSE, for example, there are about 650 seats. The seats can be bought and sold (the price of a seat amounts to $625,000). Before you are permitted to buy a seat you must pass a test that strictly checks your knowledge of the securities industry as well as your experience.

Companies raise money through the issue of shares on the Exchange market. To be admitted to the exchange, they apply for a place on the «Official List». To do this, a company must give as complete picture of itself as possible: its trading history and financial record, management and business prospects.

Stock market prices in a particular country are affected by stock market prices elsewhere in the world. They are determined by the constant interplay of supply and demand.

 

C. Find pairs of synonyms.

1) stocks	diversity
2) to fund	to authorize
3) variety	full
to deal in	to define
to determine	to influence
overseas	foreign
to entitle	to finance
shortfall	securities
to affect	to trade in
complete	deficit