NAMA : PUTERI AMALIA

NIM : 2010313320025
MATKUL : BAHASA INGGRIS EKONOMI II
PRODI : S1 AKUNTANSI

MODUL CHAPTER 6
1. ISSUING STOCKS AND SHARES
TASK 1A DISCUSSION

Advantages and disadvantages

- Putting it under the mattress

Advantages: your possession is sitting closely to you. It means easy control and
24/7 access to the money.
Disadvantages: low security means your possession is prone to get stolen. When
you keep it under the bed there’s also a high possibility that something bad like
your money will be damaged by natural disaster such as flood or fire.
- Buying a lottery ticket
Advantages: receive high profit quickly if lucky
Disadvantage: if not lucky, will lose all the money in a blink of eye. And
frankly, you don’t really have much to learn from the experience
- Taking it all to Las Vegas or Monte Carlo
Advantages: experience a lavish lifestyle that probably will bring temporary
happiness
Disadvantages: happiness is temporary. And if the budget doesn’t distribute
wisely, it’ll be a waste of fortune
- Putting it in a bank
Advantages: security and also receive interest
Disadvantages: slow and low interest
 - Buying gold
Advantages: easy to buy and very easy to sell in the market, doesn’t, require
much maintenance, the price is also pretty much stable
Disadvantages: storing and insuring gold coins and bullion can be a hassle and
expensive
- Buying a Van Gogh painting
Advantages: art as an asset is that its value doesn't rise or decline with the stock
market
Disadvantages: the fact that it depends largely on public tastes and other external
factors, make it a fairly speculative investment
- Investing in property or real estate
Advantages: rental income pays down your loan each month and builds equity
for owner
Disadvantages: high maintenance cost
- Buying bonds
Advantages: bonds tend to be less volatile and less risky than stocks, and when
held to maturity can offer more stable and consistent returns
Disadvantages: include rising interest rates, market volatility and credit risk.
Bond prices rise when rates fall and fall when rates rise.
- Buying shares
Advantages: the stock market allows you to sell your stock at any time
Disadvantages: dividend uncertainty, high risk, fluctuation in market price, and
limited control

TASK 1B. READING

Because people who own and do business privately have unlimited liability for debts. So
if the business does badly and can’t pay its debts, any creditor can have it declared
bankrupt. The unsuccessful business people may have to sell nearly all their possessions
in order to pay their debts. Limited company is a legal entity separate from its owners and
is only liable for the amount of capital that has been invested in it. If a limited company
 goes bankrupt, it is wound up and its assets are sold, liquidated in order to pay the debts.
If the assets don’t cover the liabilities or the debts, they remain unpaid. The creditors
simply do not get all their money back.
- To raise money from investors
- To make money

TASK1C. COMPREHENSION

1) Mention one of the company’s responsibilities if they decided to sell their share!
2) What is a limited company?
3) What right issues means?
4) What is bonus issues?
5) What investor get by buying share from a company?

TASK 1D. VOCABULARY

1) Liability
2) Creditor
3) Bankrupt
4) Asset
5) Liquidate
6) Liabilities
7) To put up capital
8) Venture capital
9) Founders
10) Premises
11) Underwrite
12) Dividend
 2. STOCK MARKETS
TASK 2A. VOCABULARY

1) C
2) E
3) C
4) A
5) D
6) E
7) D
8) B
9) B
10) C
11) E
12) A

TASK 2B. VOCABULARY

1. mutual fund
2. portfolio
3. stockbroker
4. blue chip
5. defensive stock
6. growth stock
7. market-maker
8. institutional investors
9. insider share-dealing

TASK 2C. VOCABULARY

1. A company's annual report contains financial statements checked by external auditors. This
has nothing to do with a stockbroker.
2. Blue chips, defensive stocks and growth stocks are all (unofficial) classifications of stocks,
according to the financial community; any company, with any kind of stocks, can make a
rights issue (if their declared authorized share capital, or the annual general meeting of
shareholders, permits).
3. When a company makes a bonus issue, it distributes new shares to shareholders instead of a
dividend. There is no necessary connection with over-the-counter companies or markets here.
4. A shareholder places an order with a stockbroker, who buys shares from or sells them to a
market-maker. This has nothing to do with a creditor.
5. Stocks and shares are equities; unlike bonds which, for a company, are debt
 6. Face value, nominal value and par value all mean the same thing. This is rarely the same as a
security's market value.
7. When a company is floated for the first time it usually pays an underwriter to guarantee to
purchase any part of the share issue that remains unsold. This has nothing to do with
liquidation.
8. Pension funds and insurance companies are important institutional investors. This has
nothing to do with liabilities.
9. Mutual firnds are organizations that spread shareholders' money in a broad portfolio, which
generally reduces risk. This has nothing to do with an underwriter.

TASK 2D. DISCUSSIONS

As a friend, i think i should tell her what situation that she will get into. Then we can talk and make a
decisions how to get out over this. 

TASK 2E. CASE STUDY : ETHICAL INVESTMENT

 emitting a large quantity of CO2 into the atmosphere

 making donations to political parties
 manufacturing weapons
 marketing powdered baby milk in countries without pure water supplies
 not recognizing trade unions
 paying low wage levels in developing countries
 producing nuclear energy
 testing cosmetic products on animals
 trading with oppressive regimes