Investments and Stock market

Investments and Stock market

Whether  you are buying shares in individual companies  or you are placing your money with banks and other financial institutions with the aim of making a profit, you are involved in investment business. Certain words and phrases you should be familiar with if you are involved in this area of business are the following:

Dividend – the distribution of a part of a company’s earnings to shareholders, usually twice a year (or even quarterly in the US).

A credit union – a member-owned financial cooperative, democratically controlled by its members, and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members.

Alternative investment – investment in items other than stocks, bonds or other securities, for example wine, art and antiques.

Intermediaries – banks, credit unions, brokers, lenders and insurance companies which make an investment using money from many individuals, each of whom receives a claim on the intermediary.

Investment income – income paid from an investment, such as dividends and interest, and rental income. The income might be taxable or tax-exempt.

I  Put in these words to build compounds related to investment and stock markets. There are some extra words you do not need to use.

bond      cat     chip     edged     exchange     holding    income    intangible    listed     rogue    selling

smart     stripping     time     trust

1.  A blue- _______company or investment is one that can be trusted and is not likely to fail.

2.  A British unit _______ (US mutual fund) is an organisation which sells shares to the public

and invests the money obtained in a range of different businesses.

3.  A first- ______buyer is someone who is buying his first house or flat.

4.  A stock ______ is a place where shares in the ownership of companies are bought and sold.

5.  A US Treasury  ______is a document showing that you have lent money to the US


6.  A  _______company’s main purpose is to control another company through owning shares in it.

7.  A  ______trader loses a large amount of their employer’s money after a bad or illegal


8.  Asset- ______involves buying a company cheaply, selling its assets separately at a profit.

9.  Gilt- ______securities are low risk investments paying a regular interest.

Key: 1 chip, 2 trust , 3 time, 4 exchange, 5 bond, 6holding, 7 rogue, 8 stripping, 9 edged

II  Choose the best word to build compounds related to investment and stock markets.

1.  A ________ plan /scheme is a financial plan that allows you to receive money after you or your

employer have paid money into it for a number of years.

a) loyalty     b) retired     c) pension   d) old age

2 . The _______ capital of a company is immediately available for business use.

a) working   b) active   c) flow   d) selling

3. ______ money is invested by experienced investors who know a lot about what they are doing.

a) Intelligent   b) Clever   c) Genial  d) Smart

4. _______ selling is when many people suddenly start to sell company shares that they own.

a) Sudden    b) Nervous    c) Panic    d) Fast

5.  A ______ company is one whose shares can be traded on a country’s main stock market.

a) market   b) share    c) listed    d)stock

6. An ________ asset is what a company owns which is not material, e.g. a good reputaion.

a) intangible   b) invisible   c) abstract   d) hypothetical

7. Unearned ________ is obtained as a result of investments and property owned instead of working.

a) money  b) income   c)tax    d) turnover

8. Insider _______ is the illegal buying and selling of shares by people who have special secret


a) handling    b) merchandising   c) trading   d) managing

9. A _____ market is a time when the prices of shares are generally rising.

a) bear     b) bull    c) lion   d) horse

10. A ______ market is a time when the price of shares is falling and a lot of people are selling them.

a) bear     b) bull    c) lion   d) horse

Key: 1c, 2a, 3d, 4c, 5c, 6a, 7b, 8c, 9b, 10a