BUSINESS BUSINESS ENGLISHENGLISH

CHAPTER TWO, BOOK FOURCHAPTER TWO, BOOK FOUR

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Stock Market

Background Case1

Reading Activities2

Speaking Activities3

Writing Activities4

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Background Case

The NYSE

What are the functions of a stock market?

What is the big board?

Warm-up

Questions

Financial instruments

Can you give two examples of financial instruments?

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Reading Passage

January Barometer EffectJanuary Barometer EffectJanuary Barometer EffectJanuary Barometer Effect

Language Points

BackdropBackdrop SentencesSentencesWordsWords PhrasesPhrases

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Background Information

www.djaverages.com

Dow Jones Averages refer to group of daily and weekly indexes of selected stock and bond prices.

Dow Jones & Company, Inc. of New York City calculates and publishes the indexes in their flagship newspaper, the Wall Street Journal.

Dow Jones Averages

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Background Information

Dow Jones Averages

There are seven Dow Jones indexes that are used most often by investors and financial analysts.

The DJIA, also referred to as the Dow, is the most important U.S. stock market performance indicator. It is an average of the value of the stocks of 30 large, primarily industrial companies.

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New Words

1. real estate

2. Dual-Listing

3. institutional investor

4. liquidity

5. marketmaker

6. presage

7. resonance

8. EMH

9. chasten

10. harbinger

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real estate

real estate

After graduating from the University of Milan, he became a real estate developer, amassing a considerable fortune by the 1970s.

property in the form of land or buildings.

＝ realty ：房地产immovable asset: 不动产

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Dual-Listing

Dual-Listing

Verizon Communications Inc. announced that the company is seeking a dual listing, it will list it’s common stock on both the NASDAQ and NYSE stock exchanges.

a company's securities are listed on more than one exchange for the purpose of adding liquidity to the shares and allow investors greater choice in where they can trade their shares 一板两市；双重上市

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institutional investor

institutional investor

The Role of Institutional Investors in Corporate Governance 机构投资在公司治理中的作用

a non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions 机构投资者

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liquidity

liquidity

Liquidity means that a business or a person has money or goods that can be sold to pay debts.

Current assets are listed in order of liquidity, or nearness to cash.

the degree to which an asset or security can be bought or sold in the market without affecting the asset's price 　流动性；变现能力

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marketmaker

marketmaker

A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security 做市商

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presage

presage

The large number of moderate earthquakes that have occurred recently could presage a larger quake soon.

to foretell or predict

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resonance

resonance

If something has a resonance for someone, it has a special meaning or is particularly important to them.

The movie had a special emotional resonance for me.

richness or significance, especially in evoking an association or strong emotion

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efficient market hypothesis

efficient market hypothesis

In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient".

The theory that all past prices of a stock are reflected in today's stock price. Therefore, technical analysis cannot be used to predict and beat a market.

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chasten

chasten

The President now seems a more chastened and less confident politician than when he set out a week ago.

to make someone realize that their behavior was wrong or mistaken:

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harbinger

harbinger

Audience reviews and critics’ picks on several major film sites are considered the first major harbinger of the Academy Awards.

a sign that something is going to happen soon

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Useful Phrases

snap upbear outacross the board trot out lock in to leaven with

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snap up

snap upto buy something immediately,

especially because it is very cheap

People were snapping up bargains.

If I don't snap you up some one else will, won't they?

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bear out

bear out if facts or information bear out a claim, story, opinion

etc, they help to prove that it is true:

Evidence bears out the idea

that students learn

best in small groups. 

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across the board

across the board affecting everyone or everything in a situation or

organization: There will be an across-the-board $2000 pay

increase if the Japanese party takes over the company.

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trot out

trot out to give opinions, excuses, reasons etc that you have

used too many times and that do not seem sincere:

Steve trotted out the same old excuses.

When you first trot these out, you may find that to your ears they sound artificial and contrived.

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lock in

lock in to do something so that a price, offer, agreement etc

cannot be changed:

Sell your stocks now to lock in some of the gains of recent months.

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to leaven with

to leaven with to mingle or permeate with some modifying, alleviating,

or vivifying element

He needs to his speeches with more humor. My affection for her was leavened with lesser likings

and with admiration.

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Difficult Sentences

Among Wall Street’s many proverbs, traders say one stands above the others: “As goes January, so goes the year.” (Para. 1)

在华尔街流传着许多句格言，其中倍受交易员追捧的一句是：“一月行情可窥见全年”。

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Difficult Sentences

Given that the other January effect was such a powerful predictor of the market during the past year, I am chastened. The market has a way of humbling us all. (Para. 9)

鉴于去年的一月效应对全年行情具有如此强大的预测作用，也让我从中学到了经验。市场具有一种告诫所有人不要触犯天条的力量。

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Difficult Sentences

Some scholars say the effect is a statistical anomaly that applies only to the American stock market. (Para. 11)

有些学者认为，一月效应是一种仅仅见诸美国股市的反常现象。

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Difficult Sentences

Still, talk of market patterns, specialists say, should be leavened with that familiar warning attached to most investment brochures and prospectuses: past performance is no guarantee of future returns. (Para. 17)

不过，当我们谈论市场模式问题时，专家提示，应该记起各种投资宣传册和招股说明书上一句熟悉的警告语：市场过去的表现不能保证未来的回报。

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Speaking Activities

EMH:

- What is the EMH?

- Do you believe in EMH?

Individual investor:

- Where to get stock tips?

- Is the individual investor at an information disadvantage?

Making it big:

- success stories

- stock selection games

1 2 3

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Writing Activities

Add Your Title

A Sales Pitch

Persuasive Speech

You work as a stock broker and you come to this university to persuade college students to invest in equities:(1) Organize a seminar with the first and second year students.(2) Your argument: stocks outperform other long-term financial assets.

You’re are the senior market analyst with NASDAQ Stock Market, Inc. For fear that XYZ Corporation might switch its listing on the NYSE, you are going to prepare a 30-second sales pitch for XYZ to reconsider.

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