Tiếng anh chuyên ngành 1 unit 15 the financial market

Summary :The financial markets Structure of financial markets Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital markets Funct

Unit 15: The financial market

I.Vocabulary

II Summary

III.Answer the Questions

['sə:pləs]

['∫ɔ:tidʒ]

[ski:'mætikli]['entəpraiz]

['strʌkt∫ə]

['instrumənt]['mɔ:gidʒ]

[kən'træktjuəl][,ekspi'rei∫n][mə'tjuəriti]

['ekwiti]

I.vocabulary:

['fju:t∫ə 'mɑ:kit]['ɔp∫n 'mɑ:kit]['broukə]

['temprəri]

[,intə'mi:djəri]

Essential [i'sen∫əl] Cốt yếu, quan trọng Surplus ['sə:pləs] Thặng dư, dư thừa Shortage ['∫ɔ:tidʒ] Thiếu hụt

Schematically [ski:'mætikli] Biểu đồ

Enterprise ['entəpraiz] Hoạt động kinh

doanh Structure ['strʌkt∫ə] Cấu trúc

Instrument ['instrumənt] Công cụ

Mortage ['mɔ:gidʒ] Sự cầm cố, thế chấp Contractual [kən'træktjuəl] Theo hợp đồng

Expiration [,ekspi'rei∫n] Sự mãn hạn

Maturity [mə'tjuəriti] Kỳ hạn thanh toán

Entitle [in'taitl] Đặt ra

nhiệm Fluctuate ['flʌktjueit] Dao động

Previously ['pri:viəsli] Trước đây

Institution [,insti'tju:∫n] Sự thành lập, tiến

hành

Underwrite ['ʌndə(')ritən] Bảo lãnh

Guarantee [,gærən'ti:] Bảo đảm

Future market ['fju:t∫ə 'mɑ:kit] Thị trường kì hạn Option market ['ɔp∫n 'mɑ:kit] Thị trường quyền

chọn

Dealer ['di:lə] Nhà buôn bán

Distinguish [dis'tiηgwi∫] Phân biệt

Temporary ['temprəri] Tạm thời

Intermediary [,intə'mi:djəri] Trung gian

II Summary :

The financial markets Structure of financial markets

Debt and Equity Markets

Primary and Secondary Markets

Exchanges and Over-the-Counter Markets

Money and Capital markets

Functions of financial markets

Firstly, it talks about functions of financial markets

Financial markets perform the essential economic function of channeling funds from household, firms, and governments that have saved surplus funds to

those that have a shortage of funds

Secondly, it talks about Structure of financial markets

_Debt and Equity Markets: A firm or an individual can

obtain funds in a financial in two ways

The most common method is to issue a debt

instrument such as a bond or a mortage

The second method of rasing fund is by issuing equity such as common stock

_Primary and Secondary Markets

A primary market is a financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or gov agency

borrowing funds

A secondary market is a financial market in which

securities that have been previously issued can be resold

_Exchange and Over-the-counter Market: Secondary

markets can be organized in two ways

One is a organize exchange, where buyers and sellers

of securities meet in one central location to conduct

trades

Over-the-counter (OTC) market , in which dealer who have an inventory of securities stand ready to buy or sell securities “over-the-counter” to anyone who comes to them and is willing to accept their prices

_Money and Capital Markets

The money market is a financial market in which only short-term debt instrument are traded

The capital market is the market in which longer-term debt and equity instruments are traded

1.What is the main function of financial market?

 The main function of financail market is

channeling funds from household, firm, and

government that have saved surplus funds to those that have a shortage of funds

2.How many categorizations of financial market are mentioned in the text?

•There are 4 categorization of financial market: debt and equity market; primary and secondary market; exchange and Over- the- counter market; money and capital market.

4 What is debt market?

 The debt market is the market where debt instruments are traded.

3.What is the debt instrument?

 The debt instrument is a contractual

agreement by the borrower to pay the holder

of the instrument fixed dollar amount at

regular interval unit a specified date.

5.What is the equity ?

 The equity which are claims to share in the net income (income after exprenses and taxes) and the assets of a business.

6.What is the equity market?

 The equity market (often referred to as the stock market) is the market for trading equity instruments

7.In which type of financial market are fresh sharea

issued and sold?

 Primary market

8 On the basis of the maturity of the securities traded in each market, what are financial market classified into?

 On the basis of the maturity of the securities traded

in each market, financial market classified into money and capital market The money market in which only

short-term debt instrument are traded while the capital market in which longer-term debt and equity instrument are traded

9.Why are the primary market for securities not well known to the public?

 Because the selling of securities to

initial buyers often take place behind

* Long question:

1.What are the functions of the financial market?

- Channeling funds from households, firms, governments that have saved surplus funds to those that have a shortage

of funds

- Provide liquidity for securities

- Provide economic informations and have assessments about corporations through their Profit Statements,

Statement of Financial Position

- Decrease expenses such as finding partnerts expense, information expense,…

- Have an important role in help Central Bank can

controls and stable national money supply

- Determine the price of various securities

2 What are the differences between holding debt

instruments and equities?

- Maturity date

- Profit can receive: fixed

profit, interest and maturity date are determined before

- Can’t take part in any

activities of company

- All debt are paid before

paid for equity holders.

- No maturity date

- Depend the result ò

company’s operation and receive periodically

- Can take part in

company’s activities, can receive management

statements.

- Vice versa

3 Are primary markets can be organized in exchange and OTC market?

 A primary market is a financial market in which new issues of a security are sold to initial buyers by the

corporation or government agency brrowing funds

 The exchange market where buyers and sellers meet in one central location to conduct trades

 The OTC market where dealers at different locations who have an inventory of securities stand ready to buy

and sell securities “ over the counter” to anyone who

comes to them and is willing to accept their prices

 Primary markets are not well known to the public while exchange and OTC markets are public markets so primary market can’t be organized in exchange and OTC markets

4.Why capital market securities are held

more by financial intermediaries?

 Intermediaries financial is business

banks, insurance companies, invest funds,… They are professional organizations, have

many experiences, have a large capital so

they very able to and easy to analyse,

statistics and predict about their

investments exactly They can avoid

disadvantages factors, especially inflations.

Thanks for listening!!!