Unit 2a. Stocks & Shares

1. Unit 2a. Stocks & Shares

2. 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.

3. 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.

4. Categories of stocks • Capital stocks (股本) Total amount of a firm's capital, represented by the value of 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.

5. 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

6. 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

7. Stock derivatives • Stock futures 股票期货 • Stock option 股票期权

8. Bonds (债券) • IOU or promissory note of a corporation • Evidence of a debt

9. Mutual Funds (基金) • Investors pool money together and buy different stocks • Diversify risks

10. Stock Index (股票指数) • A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds.

11. 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

12. Annual Report (年报) • Corporate Information • Chairman’s Report • Corporate Governance Report • Report of the Directors • Financial Statements

13. Annual Report (年报) • Financial Statements • Report 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)

14. Reading: • match the letters a-f with the explanations below. (P17)

15. Listening: • Listen to a television report about the share prices of Internet companies. How have they performed over the last year? (P18) • Choose the correct answer for exercise 2.

16. 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

17. Never mind • Page hits • Is bound to increase • Yardstick • We were due a sell-off • Float • Level out • Rollercoaster ride

18. Broker’s commission • Buy in and out of stocks • Breaking news • Million dollar question • Soar • Consolidation activity

19. Why do people invest in these companies? • Trendy • Brand factor • Tremendous potential for future revenue • Audience reach

20. What will companies in this sector do in the future? • Consolidation activity • Lycos & HotBot • Bertelsmann, Barnes & Noble

21. Listening 2 • Listen and note down words and phrases that indicate changes.

22. Listening 2 • Upward trend • Take off • Soar • Sharp • Fall back • Strong recovery • Double • Peak • Collapse • down