Stock Exchange and its work

The American Central Bank, FED, is the equivalent of the Bank of England in Britain.

The units of ownership of a company, allowing the holder to receive a proportion of the company’s profits, are the shares. The shares can be ordinary, preference, nominal and equity securities. When one company attempts to gain control of another, by buying a majority of its shares, it is making a takeover bid. When one company joins another to form a larger single company, the new company is the result of a merger. When one company buys a majority of the shares of another, and so gains control, it has carried out a takeover. The capital needed to run a business is provided by investment. The shareholders’ investment in a company is the share capital.

If the company is publicly quoted the shares are sold on the Stock Exchange. The exchange brokers (stockjobbers) work here and realize exchange transactions paying attention to exchange fluctuations. They have certain exchange restrictions while working. They have certain exchange restrictions while working. They use the exchange lists in the everyday work. Sometimes it may occur the exchange lost.

In the UK, a fixed amount of paid-up capital held by a stockholder is a stock.

If the market is thought to be good and prices on the Stock Exchange are thought to be likely to rise, the market is called a bull market.

If the market is thought to be poor and prices on the Stock Exchange are likely to fall, the market is called a bear market.

A promise to pay a sum of money over an agreed time by anyone licensed to do so, such as a government, insurance firm, etc., is a bond.

Certificates of ownership of bonds that can be transferred from seller to buyer without any formalities are bearer bonds.

Something that is owned by an individual or company, has monetary value, and can be sold to pay debts, is an asset. Items which the business expects to keep for a year or more are its fixed assets.

The sum borrowers pay to lenders for the use of their money is determined by the interest rate.

The interest which a bank charges on loans is at a rate which is usually higher than its base rate. You can raise a loan in a bank if you are a reliable client. Banks require securities to guarantee a loan.

Rates

The value of the money of one country compared to that of another is shown by the exchange rate.

The rate of the tax added to the price of an article, paid by the buyer to the seller, and by the seller to the government is the VAT rate. The Customs and Excise Department inspect a company’s VAT records, which have to be kept for 6 years.

The rate of interest fixed by a central bank, such as the Bank of England, is the bank rate.

Indexes

The index of share prices in the Dow Jones index.

The same index in Britain is the FT(FTSE- footsie) index.

The same in Japan is the Nikkei Dow index.

Banks, Accounts, Clients

The bank account that covers daily needs(salaries are paid into it, cash is drawn from it, and cheques are written against it) is the current account.

The account which describes the trading activities of a business over a stated period of time is the profit and loss account.

To start an account with a bank or with a supplier is to open it; to finish using an account with a bank or with a supplier and formally to end the arrangement is to close it.

To obtain cash from a bank at which one has an account is to draw out cash. Every company must watch its cash flow carefully if it is to avoid bankruptcy. The clients can transfer money from the account or withdraw the whole deposit from a bank. You can open a current account or deposit account in a bank. An inquiry to a bank, asking whether a customer is creditworthy, is a status inquiry. Payment of a debt in a cash is a cash settlement. The greatest sum which debtors are allowed to owe is their credit limit. Items for which payment is owed appear on an account as debit items. Items to be paid to a creditor are shown on a credit note.

If you need cash in the bank you can use the dispenser putting into it your credit card.

A note which accompanies good sent by a seller, to be signed by the person who receives the goods, is a delivery note. A document showing what has been bought and for how much, and indicating that the goods are in transit, is an advice note.

A percentage deduction made for an order over a stated value, or payment within a stated time, is a discount. The coplete statement, showing what is owed or a discount. The complete statement, showing what is owed or possessed, provides a statement of the balance account.

A statement provides, usually at the end of a financial year, showing the financial state of the business and including, among other things, its assets and liabilities, is its balance sheet.

The difference between the cost and the selling price is profit. The profit can be gross or net.

A company’s turnover, less its cost of sales, is its gross profit. A company’s turnover after the cost of sales, tax, rent and other liabilities are deducted is its net profit.