Private limited company – a company whose shares are not openly traded and can only pass to another person with the agreement of other shareholders

Date: 2015-10-07; view: 698.

Unit 15. STOCKS AND SHARES

Share –one of the parts into which ownership of a company is divided

Bond –an amount of money borrowed by a government or an organization. The government or organization produces a document promising that it will pay back the money that it has borrowed, usually with interest. The document, which can be bought and sold, is also called a bond.

Liability –an amount of money owed by a business to a supplier, lender etc

Limited (liability) company –a company where the shareholders will lose only what they have invested if the company goes bankrupt, and will not lose other property that they own

Legal entity –an organization considered as a separate, independent unit for legal purposes

Wind up – close down a company, especially because it cannot pay its debts

Venture capital –money lent to someone so that they can start a new businessMemorandum of Association – in Britain, one of the documents needed when a company starts doing business, giving details about its activities, capital etc

Registered office –in Britain, the official address of a company where all letters and notices must be sent. By law, every British company must have a registered office and the Registrar of Companies must be given the address

Authorized share capital –the largest amount of capital a company is allowed to have in the form of shares

Articles of Association (Bylaws) –an official document giving details of the structure and running of a company, foe example the powers of directors, the rights of shareholders, the way in which the accounts will be approved, etc

Set out –to write or talk about something, such as a group of facts, ideas or reasons in an organized way

Public limited company – a limited company whose shares are freely sold and traded, in Britain with a minimum share capital of £50,000 and the letters PLC after its name

‘Over-the-counter' market (OTC market) –a stock market where shares in newer and smaller companies are traded. On the OTC market, buyers and sellers are connected by computer, rather than trading in a particular building.

Unlisted Securities –bonds or shares in smaller companies that are not traded on the main financial markets in a particular place

Quoted company or listed company –a large company whose shares are traded on the main financial markets

Float a company or make a flotation – to sell shares in a company on a stock market for the first time

Underwrite an issue –if a financial institution underwrites a share issue, it arranges to sell shares to investors and agrees to buy any shares that are not bought by them

Rights Issue– an occasion when a company makes new shares available to existing shareholders. The new shares are usually cheaper than the current value of the existing shares. Rights to these new shares can be sold on the stock market. After a rights issue, the company's share price may go down because of dilution.

Bonus Issue – when a company changes part of its reserves (=past profits that have not yet been paid out to shareholders) into share capital. This increases the number of shares held by each shareholder and reduces the value of each share, making them easier to buy and sell

Distributed profits –profits earned during a particular period of time that a company pays to shareholders

Residual value – the amount of money something is worth after a particular length of time

Insolvent –a person or company that is insolvent does not have enough money or assets to pay their debts