С) Name the problems of emerging markets mentioned in the text and say which of them are typical of Russia

B) Write down 3-5 questions about the text.

Ex. 8. a) Supply the articles where necessary.

Ex. 7. Work on vocabulary and grammar.

a) Study the key words of the unit in the dictionary at the back of this book:

securities, market, equity capital, options, quotation;

b) Think of word combinations with:

market, stock, share, securities, debt, placement, trading

c) Match the verbs from (a) with the nouns from (b) below:

a) to expand b) barriers

to develop securities

to resell stocks

to remove trading

to issue shares

to list infrastructure

to possess standards

to meet capital

to submit documents

In 1990 the fastest rising stock markets in... world were those emerging in the developing countries. There are now more than 50 stock exchanges in... developing world: some are insignificant or dormant, others are active and growing.

It was once widely presumed that poor demand for securities would be the biggest handicap to... emergence of stock markets in the developing world. There were not enough potential buyers in developing countries. However, it is now evident that there is generally... adequate demand for securities, in both the primary and secondary markets, arising both from speculative interest and from... portfolio needs of financial institutions.

Even if the emerging stock markets have some demand-side difficulties,... more general, continuing and severe problem has been... insufficient supply of securities. The chief markets problem in developing countries is that the secondary market for bonds and shares is often inactive. There are often not enough buyers and sellers to make... steady market. Quite often institutional stockholders hold securities firmly matched against their future liabilities rather than engaging in frequent trade. When institutions do enter... secondary market they may try to buy or sell in large lots, thus making a big price disturbance. As institutions amass large blocks of shares they may be tempted to exercise their market power, especially in... field of corporate takeovers.

Speculation has been common in most of the emerging stock markets and very noticeable because of... thinness of the markets. While the opportunity for speculation is one of the chief attractions of any stock market, the line between speculation and sharp practices is something hard to draw.

Priviliged placements, insider trading, short selling and other questionable practices have occurred throughout the developing world.

In these circumstances,... pure theory of international trade suggests that stock markets would not be viable in all countries but would cluster at a few points of... globe, determined by the location of factor skills and time zones.

Words you may need:

dormant adj спящий; (зд.) бездействующий

presume v полагать, допускать, считать

handicap n недостаток, помеха, препятствие

steady market устойчивый рынок

large lots крупные лоты

big price disturbance существенное колебание цен

amass v накапливать

takeover n поглощение (одной компании другой)

thinness of the market узость рынка

speculation n спекуляция (торговля ценными бумагами с целью получения прибыли)

sharp practice мошенничество, надувательство

insider trading незаконные операции с ценными бумагами на основе «внутренней» информации о деятельности компании эмитента

short selling «короткая» продажа

viable adj жизнеспособный

cluster v группироваться

Ex. 9. a) Supply the prepositions where necessary.

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