商务英语综合教程下册课件房玉靖主编 ISBN9787810789707Unit 8 International Stock Exchange of UK.ppt

Unit Eight Introduction Stock exchange is a most important part of the capital market, because, if such an institution did not exist, it would be much more difficult for firms to raise money by selling shares and for governments to borrow by selling securities. Text 1 Stock exchange is a most important part of the capital market. Many shares are permanent loans and many debentures and government securities are not repayable for many years after the date of issue. Most people would not be prepared to lend money on these terms. Although they wish to earn income on their savings and accumulations of wealth, they also want their investments to have some degree of liquidity. This means that they want to be in a position where they can turn their investments quickly and easily into cash whenever their plans and circumstances change and put them in a situation where they need cash.. It is true that transferable shares and securities could be sold without the services of a stock exchange, but if each shareholder had to organize the sale individually, it could be a difficult, inconvenient and time-consuming process. The stock exchange removes these difficulties by providing a market where, at some price, shares can always be brought and sold. 8 Under the new regulatory framework the International Stock Exchange has sought recognition as an RIE for investment business in four markets: 1. The Domestic Equity Market which covers three areas: 1) The listed market----- for well-established companies who must be able to comply with stringent criteria relating to all aspects of their operation. 2) The Unlisted Market---- a market created in1980 to meet the needs of established, but smaller, less mature companies. 3) The Third Market---a new disciplined market established in January 1987 and designed to enable young, growing UK companies to raise capital on a cost