unit 2a. stocks & shares. part i. stock basics what are shares/stocks? in business and finance,...

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Unit 2a. Stocks & Shares

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Unit 2a. Stocks & Shares

Part I. Stock Basics

• What are shares/stocks?

In business and finance, a share

(also referred to as equity share)

of stock means a share of

ownership in a corporation

(company). In the plural, stocks is

often used as a synonym for

shares especially in the United

States.

Categories of stocks

Common stock ( 普通股 )As a unit of ownership, common stock typically carries

voting rights that can be exercised in corporate

decisions.

Preferred stock (优先股)Preferred stock differs from common stock in that it

typically does not carry voting rights but is legally

entitled to receive a certain level of dividend payments

before any dividends can be issued to other

shareholders.

Categories of stocks

Capital stocks ( 股本 ) Total amount of a firm's capital, represented by the value o

f its issued common and preferred stock

ADR( 美国存托凭证 )Issued by a US depositary bank that represent shares of a

foreign corporation held by the bank.

Types of stocks

Income stocks (收益股) Use large dividends to generate income

Blue chip stocks( 蓝筹股 )Pay small but regular dividends

Maintain a fairly steady price

Solid and reliable companies

Types of stocks

Growth stocks ( 增长股 ) Little or no dividend

Young entrepreneurial companies

Cyclical stocks( 周期性产业股 )Price in recessions in booms

Defensive stocks ( 防御类股 )Price in recessions in booms

• Stock derivatives

– Stock futures 股票期货– Stock option 股票期权

Bonds ( 债券 )

IOU or promissory note of a corporation

Evidence of a debt

Mutual Funds ( 基金 )

Investors pool money together and buy d

ifferent stocks

Diversify risks

Stock Index ( 股票指数 )

A stock market index is a method of me

asuring a section of the stock market. Ma

ny indices are cited by news or financial s

ervices firms and are used to benchmark t

he performance of portfolios such as mutu

al funds.

Stock Index ( 股价指数 )

Down Jones Industrial Average

道琼斯工业指数Standard & Poor’s 500

标准普尔 500 指数NYSE Composite Index

纽约证券交易所综合指数 Nikkei 225

日经 225 指数

Annual Report ( 年报 )

Corporate Information

Chairman’s Report

Corporate Governance Report

Report of the Directors

Financial Statements

Annual Report ( 年报 )

Financial StatementsReport of the Independent Auditors( 独立审计师报

告 )

Income Statement( 损益表 )

Balance Sheet( 资产负债表 )

Statement of retained earnings( 留存收益表 )

Statement of Changes in Equity( 权益变动表 )

Cash Flow Statement( 现金流量表 )

Notes to the Financial Statements( 财务报表附注 )

• Reading: – match the letters a-f with the explanations b

elow. (P17)

Listening: • Listen to a television report about the share pri

ces of Internet companies. How have they performed over the last year? (P18)

• Choose the correct answer for exercise 2.

Words and Phrases

• Go through the roof• Run into difficulties• The bubble finally burst• Drive … up high• Hype• Jump on the Internet bandwagon• In excess of • Reach the break-even point

• Never mind

• Page hits

• Is bound to increase

• Yardstick

• We were due a sell-off

• Float

• Level out

• Rollercoaster ride

• Broker’s commission

• Buy in and out of stocks

• Breaking news

• Million dollar question

• Soar

• Consolidation activity

Why do people invest in these companies?

• Trendy

• Brand factor

• Tremendous potential for future revenue

• Audience reach

What will companies in this sector do in the future?

• Consolidation activity– Lycos & HotBot– Bertelsmann, Barnes & Noble

Listening 2

• Listen and note down words and phrases that indicate changes.

Listening 2

• Upward trend• Take off• Soar• Sharp• Fall back• Strong recovery• Double• Peak• Collapse• down