BUSINESS BUSINESS ENGLISHENGLISH

CHAPTER ONE, BOOK FOURCHAPTER ONE, BOOK FOUR

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Chapter 1 Book 4Shares and Bonds

Background Case1

Reading Activities2

Speaking Activities3

Writing Activities4

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Chapter 1 Book 4Background Case

Enron

What do you know about Enron?

Warm-up

Questions

Share prices What are shares, equity, or stock?

Do you listen to share price reports?

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Chapter 1 Book 4Reading Passage

CDEL goes publicCDEL goes publicCDEL goes publicCDEL goes public

Language Points

BackdropBackdrop SentencesSentencesWordsWords PhrasesPhrases

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Chapter 1 Book 4Background Information

CDEL : China Distance Education Holdings Ltd.

www.chnedu.com

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Chapter 1 Book 4Background Information

China Distance Education Holdings Limited (CDEL) offers a range of online education and test preparation courses and other related services and products. Its courses are designed to help professionals and other course participants obtain and maintain the skills, licenses and certifications necessary to pursue careers in China in the areas of accounting, law, healthcare, construction engineering, information technology and other industries.

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Chapter 1 Book 4New Words

1. equity

2. public company

3. dividend4. negotiable5. proprietorship

6. IPO

7. deductible

8. Primary market

9. ADR/ADS

10. Greenshoe

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Chapter 1 Book 4equity

equity shares in a

company 股票；权益 In corporate finance,

a basic equation holds that a company's total assets minus total liabilities equals total owners' equity.

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Chapter 1 Book 4public company

public company n. a company whose shares are traded on at least one stock exchange or in the over the counter market 上市公司

The firm, which became a public company in 1973, now has branches all over the world.

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Chapter 1 Book 4dividend

dividend n. A share of profits received by a stockholder 股息；红利

Usually paid in cash, dividends may also be

distributed in the form of additional shares of stock.

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Chapter 1 Book 4negotiable

negotiable adj. transferable from one person to another by delivery or by delivery and endorsement 可转让的

Beware of forgery when handling checks, negotiable instruments, contracts, wills, and deeds.

In the U.S., the Uniform Commercial Code governs negotiable instruments.

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Chapter 1 Book 4proprietorship

sole proprietorship n. a form of business ownership with one owner pays personal income tax on profits from the business 业主制企业

As contrasted with the sole proprietorship and the

partnership, the corporation has several characteristics that make it a more flexible instrument for large-scale economic activity.

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Chapter 1 Book 4IPO

initial public offering (IPO) n. the first sale of stock by a company to the public 首次公开募股

While contemplating the idea of taking a company public via an IPO, the increased capitalization for the issuing business is a strong point to consider, since a public offering creates a market value on a company’s stock. 

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Chapter 1 Book 4deductible

to be tax deductible 享有税额抵减的

Sales tax may be a deductible against your federal income taxes. 

Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home.

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Chapter 1 Book 4Primary/secondary market

primary market 一级市场；初级发行市场

The first, or primary market, represents new issues When a corporation decides to sell bonds or stock to raise capital.

The secondary market involves the buying and selling of securities after the initial offering. 

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Chapter 1 Book 4ADR/ADS

American Depository Share 美国存托股票 A U.S. dollar-denominated equity share of a foreign-

based company available for purchase on an American stock exchange.

American Depositary Shares (ADSs) are issued by depository banks in the U.S. under agreement with the issuing foreign company; the entire issuance is called an American Depositary Receipt ( 美国存托凭证， ADR) and the individual shares are referred to as ADSs.

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Chapter 1 Book 4Greenshoe Option

Greenshoe/over-allotment option An article contained in an underwriting agreement that

gives the underwriter the right to sell investors more shares than originally planned by the issuer. 　绿鞋条款；超额配售权

The greenshoe option is popular because it is the only SEC-permitted means for an underwriter to stabilize the price of a new issue post-pricing.

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Chapter 1 Book 4Useful Phrases

to service a debt to trend upwardsat a premium to deliver on promise cater to to feed off

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Chapter 1 Book 4to service a debt

to service a debtto make interest payments on a debt 支付债息

Banks calculate your ability to service a debt based on your income.

The man who makes $500000 a year is much more able to service his debt than the one who makes $50000.

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Chapter 1 Book 4to trend upwards

(of the market) to trend upwards

Markets do not always move sideways, but instead, will trend upwards or downwards for some length of time. 

Global steel prices continue to trend upwards.

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Chapter 1 Book 4at a premium

at a premium considered more valuable

With talent at a premium, organizations will need to adopt effective talent management strategies.

At a higher price than usual A person would buy a bond at a premium (pay more

than its maturity value) because the bond's stated interest rate (and therefore its interest payments) are.

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Chapter 1 Book 4to deliver on promise

to deliver on promise to keep promise

Can you consistently deliver on your promise? - What current or new capabilities can support marketplace implementation?

to fulfill the expectations of… Her second album failed to deliver on the promise of

her first.

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Chapter 1 Book 4cater to

cater to to supply what is required or desired

Lately, the restaurant chain, which caters mainly to blue-collar diners, has been hurt by competition.

The marketplace caters to the requirements of advertisers.

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Chapter 1 Book 4feed off

to feed off to use something to increase, become stronger, or

succeed

There will always be fad diets that feed off our desire to be thin.

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Chapter 1 Book 4Difficult Sentences

While the education sector is generally viewed as having good future prospects, the deal was up against a widespread lack of interest in primary market transactions which didn’t really change even though the market trended upwards during the two-week marketing period––as did two of its closest comparables. (Para. 3)

虽然教育产业通常被视为拥有良好的前景，但此次上市适逢投资者普遍存在对一级市场缺乏热情的时期。在为期两周的上市营销宣传期间，虽然市场交易状况以及其他两家最相关企业的行情有所上扬，但市场总体走势并未发生根本的转变。

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Chapter 1 Book 4Difficult Sentences

CDEL’s initial price range may have been a bit too ambitious in the current market as it valued the newcomer at a premium to the valuation at which ATA Inc came to market six months ago, even though CDEL is at a similar, or even earlier, stage of growth than ATA and has yet to prove that it can deliver on its promises. (Para. 4)

CDEL 的计划价格区间在当前的市场情况下可能过于乐观。这是因为该价格区间超过 ATA 公司在 6 个月前挂牌上市时的估值，加之考虑到 CDEL 是一家同行业企业，甚至较 ATA 公司居于产业发展的较早阶段，投资者仍然在观望 CDEL 能否实现其对股东的承诺。

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Chapter 1 Book 4Difficult Sentences

The business is feeding off a government push to regulate professional licenses in various industries in order to lift the overall skill levels. (Para. 5)

该业务是继政府要求从业人员持证上岗之后开展起来的。政府出台的上述政策旨在提升从业人员的总体技术水平。

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Chapter 1 Book 4Difficult Sentences

Since US IPOs can be priced 20% above or below the original price range, the bookrunners could have fixed the price at $7.20 even if they had retained the initial range. (Para. 12)

由于美国的 IPO 允许在原定发行区间的之上或之下20% 范围内调整，所以既使 CDEL 保持原发行价位不变，承销商也可以在 7.20 美元价位发售。

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Chapter 1 Book 4Speaking Activities

Strategies:

- The "buy low and sell high" maxim

- Tips offered by stock market analysts

Cashing in on the stock market:

- Is it wise to consider investing in the stock market now?

- What are the pros and cons?

Making a decision:

- sell now

- buy now

1 2 3

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Chapter 1 Book 4Writing Activities

Add Your Title

Write a report

Letter to your friend

Tell your friend what you know about shares and bonds:(1) What does it mean to own stock?(2) What are bonds and how do they differ from stocks?(3) What are the advantages and possible risks involved in owning stock?

Imagine yourself to be the financial manger of a big company. After some serious field research in Shanghai you come to some conclusions about what is needed for the company to go through an IPO process.

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