Describe different kinds of securities and different kinds of markets.
From the point of view of investors, the world's financial markets exist in order to channel money toprofitable investment activities and projects. From the point of view of borrowers such as companies andgovernments, financial centres exist so that they can find capital on the best terms.
Most investors are not private individuals but institutions like banks, insurance companies, mutual fundsand pension funds who may, of course, be investing the money of private individuals indirectly. Themarkets they invest in include the money and currency markets, stock markets for shares (also known as equities), commodities markets for anything from gold to pork bellies (used for making bacon), and property (buildings and land).
There are also markets for futures in currencies, equities, bonds and commodities: a future is a fixed-price contract to buy a certain amount of something for delivery at a fixed future date.
There are markets for options in currencies, equities, and bonds. Here, an investor buys the right tobuy or sell a certain amount of these things at a certain price and particular date in the future. This is aform of betting on how prices will move.
Some of these markets, like stock markets, are based in particular buildings, some with trading floors, but most trading is now screen and telephone based. Others, like bond and currency markets, are 'virtual', in the sense that selling and trading takes place by phone and computer between the premises of issuers, brokers and traders.
Securities constitute the objects which investments are made of. There are various kinds of securities.
They are traded in markets, each one with specific rules.
Stocks are the most popular security for investment. They actually represent ownership in a specific company. The most common way stocks appear in the market is by operations called initial public offerings (IPO). These happen when a company decides to issue stocks, but giving away part of it to the public, in return for money paid by the new shareholders. The public gains a part of the company, by the cost of paying money for it, while the company obtains a massive amount of money, by the cost of having to give away part of its ownership, as well as part of its profits in the form of dividends.
Outside IPO's, stock can be bought and sold in stock exchanges. These are places (physical or virtual) where stocks are assigned a selling price and a buying price. Anyone can buy or sell stocks with the help of brokers.
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Companies often need money for various ends, such as improving itself, expanding, buying other
companies, and so on. There are many forms of doing this. One of it is using a bond. A bond is a contract between an issuing company and a buyer. In this contract, the buyer lends a certain amount of money to the company, for a certain number of years. In return, the company is obliged to pay interest to the buyer, periodically, at a specified rate.
Funds become an interesting investment tool for everyone who is not interested in wasting time with stock or bond picking, trading, and so on. Investment companies manage one or more funds, where money from many investors is managed by professionals. One investment fund usually holds a portfolio of securities. The decisions to buy or sell those securities are taken by the investment company behind the fund.
Unit 6 ADVERTISING
Subliminal advertising should be banned Express your viewpoint.
«Subvertising» is a combination of the words “subvert” and “advertising”. Indeed, subvertising consists in subverting or sabotaging commercial as well as political advertisements that are displayed in public places.
The purpose of subvertisers is usually to encourage people to think, not only about the products they buy, but also about the nature of the society they live in.
There are a number of similarities between advertising and subvertising: both are very often creative, witty, direct and thought-provoking.
However, differences between two are enormous. While the goal of advertising is ultimately to increase consumption and corporate profits, subvertising aims to make people aware of the constant pressure they are under to buy things, to spend money, to “shop-till-you-drop”, so that they may be able to resist that pressure.
From the one point of view,some people think that subvertising (for example, logos,posters,hoardings) “pollute our mental environment”. From the other point, one can recognize that subvertising is a form of creativity and a way of exercising one’s freedom of speech.
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