Summarize the content of the text.
Date: 2015-10-07; view: 464.
Read the text and say whether the statements are TRUE or FALSE.
1. Blue chip companies have a reputation for a high volatility on the market, especially during economic crises.
2. All blue chips companies are household names.
3. You will hardly reap a great profit if you invest in a blue chip company during a recession period.
4. Blue chip companies tend to increase dividends of their shareholders in the long term.
5. If you are not looking for quick substantial returns you should invest in blue chips.
What are advantages and disadvantages of investing in blue chip companies?
4. Work with vocabulary. Identify the words and word combinations marked violet in the text with their definitions given in the table below.
| 1. (3 words) an investment fund traded on stock exchanges, much like stocks. An ___ holds assets such as stocks, commodities, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Most ___ track an index, such as the S&P 500 or MSCI EAFE. ____ may be attractive as investments because of their low costs, tax efficiency, and stock-like features. | |
| 2. (2 words) somebody / something who is very well-known | |
| 3. (2 words) A. the sum of recognized accomplishments; B. your reputation, based on the things that you have done; C. the past record of the accomplishments and failures of a person, business, etc. | |
| 4. (n) a reduction in economic or business activity | |
| 5. (adj) priced lower than the real, normal, or appropriate value | |
| 6. (adj) having existed for a long time, and having been successful or accepted for a long time | |
| 7. (2 words) the total percentage of fund assets used for administrative, management, advertising, and all other expenses. An ____ of 1% per annum means that each year 1% of the fund's total assets will be used to cover expenses. The _______ does not include sales loads or brokerage commissions. | |
| 8. (n) a profit on money that you have invested | |
| 9. (n) a situation that can change easily | |
| 10. (2 words) an investment company that continually offers new shares and buys existing shares back at the request of the shareholder and uses its capital to invest in diversified securities of other companies | |
| 11. (adj) following one after another without interruption; successive | |
| 12. (v) to distribute investments among different companies or securities in order to limit losses in the event of a fall in a particular market or industry | |
| 13. (3 words) a company selling secondary goods and services | |
| 14. (adj) continuing or developing steadily in the same way | |
| 15. (n) A. the business of a broker; B.a fee or commission paid to a broker; C.a firm engaged in buying and selling stocks and bonds for clients | |
| 16. (n) a situation in which a business has money or property that it can sell in order to pay money that it owes | |
| 17. (2 words) a way of measuring the value of a company calculated by multiplying the number of the company's shares by their price on the stock market | |
| 18. (2 words) companies, industries, and products that are used for personal and household purposes. _____ include food, alcohol, tobacco, medicine, clothing, and so forth. Companies that sell ______ have a reputation of resistance to economic downturn, but this is not always the case. In any event, they are often sold long-term investments. | |
| 19. (3 words) a free-float capitalization-weighted index based on the common stock prices of 500 American companies. It is one of the most commonly followed equity indices and many consider it the best representation of the market and a bellwether for the U.S. economy. | |
| 20. (n) the process of doing a job or action |
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| Scan the text and match the subheadings to the parts I-V. | | | Work with vocabulary. Identify the words and word combinations from the previous exercise by the context provided. |