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
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.
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
different stocks
Diversify risks
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.
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 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)
• Reading:
– match the letters a-f with the explanations
below. (P17)
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.
Words and Phrases
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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
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Never mind
Page hits
Is bound to increase
Yardstick
We were due a sell-off
Float
Level out
Rollercoaster ride
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Broker’s commission
Buy in and out of stocks
Breaking news
Million dollar question
Soar
Consolidation activity
Why do people invest in these
companies?
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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
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Upward trend
Take off
Soar
Sharp
Fall back
Strong recovery
Double
Peak
Collapse
down