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The Stock Market

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					     unit 8

The Stock Market                                                   stock in almost every business sector. I have preferred
                                                                   stock and stocks in Healthcare, Food, Transportation,
                                                                   Banking and the Information Technology sector.
Key vocabulary                                                     I decided against buying bonds. Government Bonds are
                                                                   only interesting when you live in the States because you
This section provides a basic introduction to the stock            pay less tax there if you buy bonds from the
market. The topic itself is complex and this unit contains         government. However, as I live in Europe, I prefer to
some quite difficult vocabulary, some of which is specific          buy ‘preferred stock’. They have to be bought through
to either the United Kingdom or the United States. You             a broker and are similar to bonds as it is like making a
may wish to start by asking students if they can explain           loan to a company instead of to the government. The
what the stock exchange/market is and how it works.                company pays you back before paying common stock
Once this has been done, the class can read through the            or ordinary shares. However, they are riskier than bonds
Key vocabulary section. Alternatively, you may wish to             but the returns are much higher – 7 to 8.5. I prefer to
ask students to close their books and fill the gaps in the          take the risk and get higher returns.
photocopiable exercise on page 69 after listening to the
cassette version.                                                KEY:
The stock market is currently changing very rapidly in a         Types of investment            Reasons for investing
number of ways. It is now possible to buy and sell shares        Preferred stock and stocks     High returns on high risk
using computer terminals and many countries now have             in various business and        investments
electronic market places. In addition to this, investors         geographical sectors
can now trade directly over the Internet. Lastly, the stock
market has become increasingly international in scope,           The next listening extract provides information about
which has meant not only extended opening hours, but             the ‘Internet portfolio trackers’. You may wish to
has also led to a number of alliances between                    explain that when we refer to all of an individual’s or
international exchanges.                                         company’s investments on the stock exchange, we use
                                                                 the phrase financial portfolio.
Lead-in
                                                                 TAPESCRIPT: (part 2)
1 This section introduces students to the language                 My broker looks after my investments but I like to keep
commonly found in the financial pages of the press.                 up-to-date with them. In fact, I check on them several
If possible, bring in an English language newspaper and            times a day! I track them on the Internet. There are lots
read some of the financial headlines to the class. Draw             of ‘Internet portfolio trackers’ now. I use the CBS one.
attention to the less standard forms of increase and               You have to enter in the number of stocks you have,
decrease that are used to describe share performance on            the symbol of each company, the price you paid and
the stock market such as slide, slip and plummet.                  the date you bought them. Then it will give you your
                                                                   profits and losses. In fact the information on how your
KEY:                                                               stocks are doing is updated every five minutes!
Good performance: 1, 3, 4 and 7
                                                                 KEY:
Poor performance: 2, 5, 6 and 8
                                                                 She checks on her shares regularly on the Internet through
2   In this short listening extract, students are invited to     the CBS portfolio tracker.
listen to a personal investor’s experience of investing
on the stock market and note down the type of                    Reading
investments and the reasons for investing. They may
need to listen a few times as they are introduced to
                                                                 1 Students may need some encouraging questions to
                                                                 get them discussing what they think the text is about,
some new vocabulary here. It is important to point out
                                                                 such as What do you think is meant by the term
that Americans generally refer to shares as stock. When
                                                                 ‘investment fever’? How are investing and the Internet
students have completed the table, you could ask them
                                                                 linked? What kinds of things can you buy on the Internet?
to explain why Isobel Mendelson decided against
                                                                 Do you think it is possible to buy stocks and shares on the
buying bonds.
                                                                 Internet? etc.
TAPESCRIPT: (part 1)
    When I decided to invest on the stock exchange, I got        2 Students are asked to read the text to see if they
    advice from a broker on the type of investments to           have guessed correctly what the main ideas of the text
    make. She told me that it was really important to            are. They may have difficulties with the following:
    diversify so I did, both geographically and sector wise. I   Vocabulary: going (line 58)
    invested in Europe and the United States and have            Idiomatic expression: setting their sights on (lines 25–6)

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Description: The Stock Market