Английский язык: Сборник текстов и упражнений. Бодргина Л.И - 64 стр.

     If corporate borrower finds that it needs to raise additional money, it can re-
finance an existing loan. In this transaction the lender is essentially lending more
money to its debtor. But if interest rates have gone up during the period since the
original loan was secured, borrowers pay a higher rate in order to hold additional
funds. Even if the rate has gone down, the lender benefits by having increased the
size of its original loan at a lower rate of interest.
     Using Profits. Some corporations pay out most of their profits in the form of
dividends to their stockholders. Investors buy into these companies because they
want a high income on a regular basic. But some other corporations, usually called
“growth companies,” prefer to take most of their profits and reinvest them in re-
search and expansion. Persons who own such stocks are content -to accept a
smaller dividend or none at all, if by rapid growth the shares increase in price.
These persons prefer to take the risk of obtaining a “capital gain”, or rise in value
of the stock, rather than be assured a steady dividend.
     The typical corporation likes to keep a balance among these methods of rais-
ing money for expansion, frequently plowing back about half of the earnings into
the business and paying out the other half as dividends. Unless some dividends are
paid, investors may lose interest in the company.

     Answer the following questions.
     1. What do many companies raise new capital for?
     2. What methods of raising new capital do you know?
     3. Why are bonds desirable for the company?
     4. Do holders of bonds have a voice in company’s affairs?
     5. What rights do the investors who buy common stock have?
     6. What happens when a company issues too much stock?
     7. When are the owners of the preferred stock paid?
     8. Where can a company borrow its working capital?
     9. What is the money policy of the “growth companies”?




                             UNIT 14
                WHY DO PEOPLE BUY WHAT THEY BUY?

      To better understand why consumers buy as they do, many marketers turn to
behavioral sciences for help.
      Specific consumer behaviors vary a great deal for different products and from
one target market to the next. In today’s global markets, the variations are count-
less. That makes it impractical to try to catalog all the detailed possibilities for
every different market situation. For example, how and why a given consumer
buys a specific brand of shampoo may be very different from how that same con-
sumer buys motor oil; and different customers in different parts of the world may
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