SKILL UP!

BusinessSpotlight

VOKABELTRAINING LEICHT GEMACHT

AUSGABE 36

Finance
also:
Trading and investing | In Focus: financial instruments
CONTENTS

SHOW ME THE MONEY!

Dagmar Taylor, language author
business@spotlight-verlag.de
Do you want to know how much you’re going to gain? In this issue
of Skill Up!, you’ll find the language you need to talk about trad-
ing and investing.
In Picture This! (pp. 4–5), our illustration shows what you might
see in a trading room. Have a look at Word Bank (pp. 6–7) to
learn the vocabulary that is used to talk about corporate govern-
ance. And in our Small Talk section (pp. 16–17), you can practise
the language of corporate scandals.
We hope you’ll invest a little time and energy learning the many
useful words and expressions to do with finance.

SKILL UP!
Recent Skill Up! topics The key to effective learn-
ing is repetition. Reading
l The language of law, no. 33 (4/2015) this guide is good; reading
l Get connected!, no. 34 (5/2015) it a second time will mean
l Architecture & design, no. 35 (6/2015) you are better able to use
the new words. It’s as sim-
ple as shampooing your
For a full list of Skill Up! topics covered to date,
hair: read, then repeat!
go to www.business-spotlight.de/skill-up

Word of the Day

www.

On our website, you’ll find selected

vocabulary in our Word of the
Day section. You can listen to
the words, definitions and exam-
ple sentences — and download
the MP3 file of each word — at
Zusätzliche sowie zurückliegende Ausgaben von SKILL UP! können Sie www.business-spotlight.de
zusammen mit dem Sprachmagazin Business Spotlight nachbestellen:
www.business-spotlight.de/einzelausgaben
Tel. +49(0)89/8 56 81-16; E-Mail: leserservice@spotlight-verlag.de

2 SKILL UP! ISSUE 36

Thinkstock Editorial

Stock trading:
a lucrative business

CHECKLIST: WHAT CAN YOU DO?

Below, you will find the contents of this issue of Skill Up! and a checklist of what you should
be able to do with confidence after studying this guide. Ask yourself what you can really do.
If you can’t say yes to every statement, go back and spend more time on learning the relevant
vocabulary. Don’t forget to read our Skill Up! tips and do the online exercises!

wContents Page(s) Checklist Not yet A little Yes!

Picture This!
Trading and 4–5 I know the vocabulary for talking about what happens ❏ ❏ ❏

investing during a day in the life of a stockbroker.
Word Bank
Corporate 6–7 I can talk about corporate governance — how companies ❏ ❏ ❏
governance are run fairly for all stakeholders.
False Friends
Beyond your means 8–9 I can identify the false friends presented here — and use ❏ ❏ ❏
the correct translations.
In Focus
The name’s 10–11 I can use the language I have learned to talk about ❏ ❏ ❏
bond bonds and financial instruments.
Essential Idioms
Made of money 12–13 I can correctly use idiomatic expressions to talk about ❏ ❏ ❏
money and finance.
Close Relations
By all 14–15 I know how to use the different members of the “account” ❏ ❏ ❏
accounts family.
Small Talk
Improper 16–17 I can make small talk about financial scandals and other ❏ ❏ ❏
practices improper practices.
Your Profile
Boost your finances 18 I feel more confident using the vocabulary in this guide. ❏ ❏ ❏
Preview
19

ISSUE 36 SKILL UP! 3

PICTURE THIS!

Bernhard Förth
11
12

10

7
6

2
4
5
3
1

Multiple screens in
the trading room

TRADING AND INVESTING

Billionaires don’t work — they have their assets work for them. In this illustration, we focus
on the words and expressions you need when talking about investing in the stock market.

1. trading floor Börsenparkett 4. client Kunde/Kundin

electronic trading elektronischer Wert- 5. currency Währung
papierhandel exchange rate Wechselkurs
floor trading Parkett,- Präsenzhandel foreign exchange Devisen
open outcry offener Zuruf (forex, FX)
trading room Börsensaal 6. market value Kurswert
2. trader Wertpapierhändler(in) auction market [(O:kS&n] Auktionsmarkt
gesticulate gestikulieren markets close: the ~ die Börse schließt;
[dZe(stIkjUleIt] auch: Börsenschluss
high-frequency trading Hochfrequenzhandel markets open: the ~ die Börse öffnet;
(market) order Auftrag auch: Börsenöffnung
rogue trader [rEUg]  aus der Reihe tanzen- primary market Markt für Neuemissio-
de(r) Händler(in) [(praImEri] nen, Primärmarkt
3. stockbroker Börsenmakler(in) 7. crash Zusammenbruch
commission Provision boom Hochkonjunktur

4 SKILL UP! ISSUE 36

 A typical stockbroker’s day
“I get to work at about 7 a.m. and start calling clients. I ask how they’re doing and how
they think the market will go. At 8 a.m., the orders start coming in. A client might call
and say: ‘I want to buy options for February at 3.5.’ This goes on until the markets close.”

Investing and investors invest sth. etw. investieren

asset Vermögenswert disinvest sth. etw. desinvestieren
asset-stripping Anlagenausschlachtung investment  Kapitalanlage;
billionaire Milliardär(in) Investition
investor  Kapitalanleger(in),
blue chip erstklassig; erstklassiges
Investor(in)
Wertpapier
leverage [(li:vErIdZ] 
Verhältnis von Fremd-
capital Kapital
zu Eigenkapital
venture capital Risikokapital
mutual fund US  (offener) Investment-
carpetbagger UK Spekulant(in) fonds
disposable income verfügbares Einkommen portfolio Wertpapierbestand
dividend Dividende principal Kapital
equity [(ekwEti]  Eigen-; Stammkapital rentier [(rQntieI] Privatier
financial derivative Finanzderivat return Ertrag, Rendite
[di(rIvEtIv] shareholder Aktionär(in)
financier [faI(nÄnsiE] Geld-, Kapitalgeber(in) speculation Spekulation
futures Terminwaren speculative spekulativ
holding (Aktien-)Besitz stakeholder Interessengruppe(n)
interest Zins(en) stake Anteil

Make your
money grow

8. listed company börsennotiertes

Unternehmen Did you know?
9. deal Geschäft The trading floor is sometimes
insider dealing Insidergeschäft(e), also referred to as the pit and
-handel
represents the area where traders
option Option, Vorkaufsrecht complete the buying and selling
10. stock exchange Börse of assets using the open outcry
iStock

bourse [bUEs]  Effektenbörse (auf dem method, which involves shouting

europäischen Festland) and using hand signals. However,
commodity exchange Warenbörse most trading floors have dis-
stock market Aktienmarkt, -börse appeared, as electronic trading
11. share index Aktienindex has taken over. The most famous
(US stock index) trading floor is the NYSE (New York
12. information ticker Börsentelegraf, Stock Exchange), which combines
-ticker
an auction market and electronic
trading.

ISSUE 36 SKILL UP! 5

 WORD BANK

CORPORATE GOVERNANCE
It’s important to make sure a company is run fairly for all stakeholders. We present
vocabulary for talking about corporate governance.

Governance
accountability  Rechenschaftspflicht,
Verantwortlichkeit
Stakeholders annual reporting jährliche Berichterstattung
community Gemeinschaft audit [(O:dIt] Buchprüfung, Revision
creditor Gläubiger(in) auditor [(O:dItE]  Abschluss-, Wirtschaftsprü-
customer Kunde/Kundin fer(in), Revisor(in)
employee Mitarbeiter(in) external auditor externe(r) Prüfer(in)
government Regierung independent auditor unabhängige(r) Prüfer(in)
investor Investor(in) internal auditor (betriebs)interne(r)
owner Eigentümer(in) Prüfer(in)
regulatory agency Aufsichts-, Regu- code of conduct Verhaltenskodex
lierungsbehörde company behaviour Unternehmensverhalten
shareholder  Aktionär(in), compliance  Einhaltung (von Vorschriften)
Anteilseigner(in) conflict of interest Interessenkonflikt
non-shareholder Interessen- corporate citizenship unternehmerische
stakeholder vertreter(in) ohne Verantwortung
eigene Aktien corporate culture Unternehmenskultur
shareholder Aktionärs- disclosure Offenlegung
activism engagement ethical behaviour ethisches Verhalten
stakeholder Interessengruppe general meeting Hauptversammlung
supplier  Lieferant(in), good faith Treu und Glauben
Lieferfirma governance [(gVv&nEns] verantwortliche
Unternehmensführung
governing entity Entscheidungsgremium
honest practices anständige Gepflogenheiten
integrity Integrität, Seriosität
legal duties gesetzliche Verpflichtungen
The central bank obligation Verflichtung, Obliegenheit
can impose oversee sth. etw. überwachen,
beaufsichtigen
sanctions if auditors principle Grundsatz
fair presentation US angemessene Darstellung
fail to provide true and fair view UK 
den tatsächlichen Verhält-
information nissen entsprechendes Bild
transparency Transparenz
requested by the
Bank of England

6 SKILL UP! ISSUE 36

iStock
 True and fair view:
report to the board

All reports to the

board must present
a true and fair view
of the company’s
financial performance In control!
Are you using the word control correctly?
When you look closely at something to make
sure that everything is correct, you check it:
The board
board: the ~ Vorstand l Could you check these numbers again,
board member Vorstandsmitglied please? Something doesn’t add up.
independent board unabhängiges If you check something a second time or with
member Vorstandsmitglied great care, you double-check it.
ad hoc committee ad-hoc-Ausschuss However, if you limit something or make it
[Äd (hQk] happen in a particular way, you control it:
annual report Jahresbericht
l T he government has announced plans to
audit committee Prüfungsausschuss
control spending.
chair(person) Vorsitzende(r)
compensation Vergütungs-
committee ausschuss
election of board Wahl der Vorstands-
members mitglieder Pay
executive director geschäftsführen- advance Vorschuss
de(r) Direktor(in);
allowance Zuschuss; Aufwandspauschale
Geschäftsführer(in)
bonus Bonus, Prämie
financial reporting Bilanzierung; Finanz-
commission Provision
procedure berichterstattung
compensation Arbeitsentgelt; Abfindung
governance body Leitungsorgan
direct expenses direkte Aufwendungen
management board Geschäftsführung
executive pay Managergehalt
nomination committee Nominierungs-
ausschuss expenses  Aufwendungen, Auslagen,
Spesen
non-executive director etwa: Aufsichtsrats-,
(non-exec)  Verwaltungsrats- fee Honorar
mitglied incentive [In(sentIv] Anreiz
probity  Redlichkeit, payout Dividendenzahlung
Integrität reimbursement Rückerstattung
representative  Vertreter(in); remuneration Vergütung; Lohn, Gehalt
Bevollmächtigte(r) remuneration package Leistungspaket
seat on the board Sitz im Vorstand salary Gehalt
supervisory board Aufsichtsrat severance pay Abfindung
[)su:pE(vaIzEri] share option Aktienbezugsrecht
(US stock option)

Executive pay has increased

substantially in the last decade

ISSUE 36 SKILL UP! 7

FALSE FRIENDS

BEYOND YOUR MEANS

There are many words in German and English that sound similar but have very different
meanings. They are “false friends”. Learn the correct translations of these terms.

bankruptcy concourse

PhotoObjects.com

iStock Editorial
t

What’s Konkurs in English? It’s not concourse!

Konkurs = bankruptcy [(bÄNkrVptsi] concourse [(kQNkO:s]= Wartehalle
“The rapper declared bankruptcy a day after “London’s King’s Cross concourse has enough
his divorce was finalized.” space for large numbers of passengers to move
freely.”

exchange rate

What’s Kurs in English?

Kurs = exchange rate
“Get the latest exchange rates of major
world currencies here!”

It’s not course!

iStock

course = Kurs, Lehrveranstaltung

“I can’t come that weekend — I’m doing a course
creative writing course in New York.”

Other translations
course = Gang
“We had a delicious four-course lunch. I had to
have a lie-down afterwards.”

course of action = Vorgehensweise

iStock

“This is the course of action banks should follow.”

ISSUE 36
 shareholder auctioneer

iStock Editorial
Mauritius

What’s Aktionär in English? It’s not auctioneer!

Aktionär = shareholder (US also stockholder) auctioneer = Auktionär(in)
“The company has banned the media from “Sotheby’s auctioneers are trained profession-
attending its shareholder meeting next week.” als, often with decades of experience.”

means

What’s Mittel in English?

Mittel = means
“If you spend more than 28 per cent of your
monthly income on your house, you’re liv-
ing beyond your means.”
iStock

It’s not middle!

iStock
middle = Mitte
“He’s going to be on holiday until the mid-
dle of January.”

Skill up! Audio

You can do an exercise on
Business Spotlight Audio
middle

YOUR PROFILE
Write down your own example sentences for the false friends on this page.

ISSUE 36 SKILL UP! 9

 IN FOCUS

THE NAME’S BOND

Here, we present vocabulary and word part-
nerships for talking about bonds, financial
instruments and securities.

Securities
accrued interest [E(kru:d] aufgelaufene Zinsen
beneficiary [)benI(fISEri] Bezugsberechtigte(r),
Nutznießer(in)
bond  Anleihe, Schuldverschreibung
bearer bond Inhaberschuldverschreibung
Risky business callable bond [(kÄlEb&l] 
abrufbare Schuldverschrei-
credit risk Kreditrisiko bung
event risk Eintrittswahr- corporate bond Industrieanleihe
scheinlichkeit government bond Staatsanleihe
exchange (rate) risk (Wechsel-) sub-sovereign Anleihe einer Regierung
Kursrisiko government unterhalb der Staatsebene;
inflation risk Inflationsrisiko bond [sVb (sQvrIn]  Kommunalanleihe
liquidity risk Liquiditätsrisiko supranational bond Anleihe einer überstaatlichen
prepayment risk Risiko vorzeitiger Einrichtung
Rückzahlung coupon [(ku:pQn] Kupon, Bezugsschein
reinvestment risk Wiederanlagerisiko debt securities schuldrechtliche
sovereign risk Länderrisiko, Wertpapiere
[(sQvrIn] staatliches Risiko debenture [di(bentSE] Schuldverschreibung
volatility risk Volatilitätsrisiko euro debt security Euro-Schuldverschreibung
yield curve risk Ertragskurvenrisiko equity securities Anteils-, Dividendenpapiere
capital gain Kapitalgewinn
ordinary share Stammaktie
(US common stock)
preferred equity Vorzugskapital
face value Nominal-, Nennwert
issuance Ausgabe, Emission
issue a bond eine Anleihe ausgeben
Samurai bonds liquidate sth. etw. tilgen
maturity [mE(tSUErEti] Fälligkeit
balloon maturity letzte zur Tilgung einer
Gesamtemission vorgesehe-
nen Papiere
rate of return Rendite, Rentabilität
residual interest Restzins
[ri(zIdjuEl]
underwriting Zeichnung, Risikoübernahme
yield Ertrag

10 SKILL UP! ISSUE 36

iStock
 Not all bonds are risky, but some
are more volatile than others

Instruments
cash instrument Barmittel
common share equity Stammaktienkapital
contractual right vertragliches Recht
[kEn(trÄktSuEl]
debt-based schuldenbasiert
derivative [di(rIvEtIv] 
Derivat
derivative financial derivative Finanz- Bond spread
instruments instrumente
equity-based aktienbasiert
foreign exchange Währungs-, Devisen-
instrument instrument
money market Geldmarktinstrument
instrument
ownership interest Beteiligung
preferred share equity Vorzugsaktie
tradable asset handelbarer
Vermögenswert
tradable package of handelbares Finanz-
capital paket

Sudden-death bonds

Dim-sum bonds

ISSUE 36 SKILL UP! 11

 ESSENTIAL IDIOMS

MADE OF MONEY
There are a lot of idioms that have their roots in finance — or that we can use to talk about
money. You can learn them in the short dialogues below.

SKILL UP! Laughing all the way

First, read the two versions of the short conversations. Then to the bank
cover up the idiomatic version and read the simpler version
again. Can you remember how to say the same things idiomat-
ically? Check that you’ve understood them with our translations.

iStock
First, the idiomatic way
Brenda: How much is this going to cost? I’m not made of
money! Check the translations
Wayne: That’s the great thing — it’s a real money-spinner made of money: kein Krösus
and it won’t cost you an arm and a leg. not be ~ ifml. sein
money-spinner Verkaufsschla-
Brenda: So, I’ll be laughing all the way to the bank then.
UK ger, Renner
cost sb. an arm jmdn. ein
Now, more simply and a leg ifml. Vermögen
Brenda: How much is this going to cost? I’m not very rich! kosten
Wayne: That’s the great thing — it’s going to make you a lot laughing all the einen Reibach
of money and it’s not very expensive. way to the bank: machen
be ~ ifml.
Brenda: So, I’ll be earning a lot of money easily then.

First, the idiomatic way Now, more simply

Tracy: I hear the CEO got a six-figure golden
parachute.
Mike: Probably chicken feed for him, while
we’re being paid peanuts.
Tracy: At least he wasn’t feathering his own
nest like the last guy.
Tracy: I hear the CEO got a six-figure payment to
leave his job.
Mike: Probably a small amount for him, while
we’re being paid a tiny amount.
Tracy: At least he wasn’t making himself rich in
a dishonest way like the last guy.

Check the translations

iStock

golden parachute ifml. großzügige Abfindung

chicken feed ifml. lächerliche Summe
peanuts: be paid ~ ifml. einen Hungerlohn gezahlt bekommen
feather one’s own nest sein Schäfchen ins Trockene bringen

It’s chicken feed ISSUE 36

for them!
iStock

First, the idiomatic way

Wayne:  Her accountant had been cooking
the books for years, but now it’s pay-
back time.
Brenda: Why didn’t she notice sooner?
Wayne: Because she’s rolling in it. She’s
never had to worry about money. She
was born with a silver spoon in her
Silver spoon: mouth.
no worries

Check the translations Now, more simply

cook the books ifml. die Bücher manipulieren Wayne: Her accountant had been changing
payback time: it’s ~ ifml. jetzt kommt die Revanche figures illegally for years, but now it’s
rolling in money/it: im Geld schwimmen finally time for him to live with the
be ~ ifml. consequences.
born with a silver spoon mit einem silbernen Brenda: Why didn’t she notice sooner?
in one’s mouth: be ~ Löffel im Mund geboren Wayne: Because she has a lot of money. She’s
sein, aus reichem Hause never had to worry about money. She
sein has rich parents.

Money doesn’t usually

Digital Visionit
grow on trees
First, the idiomatic way
Tracy: So how much is it all going to set us
back?
Mike: I’ve only been given a ballpark figure,
but we’re looking at a few grand at
least.
Tracy: What? Money doesn’t grow on trees,
you know!

Now, more simply

Tracy: So how much is it all going to cost?
Check the translations
Mike: I’ve only been given a rough calcula-
tion, but we’re looking at a few thou- set sb. back sth. ifml. jmdn. etw. kosten
sand pounds at least. ballpark figure ifml. grobe Schätzung
grand ifml. tausend Dollar/Pfund
Tracy: 
What? We shouldn’t spend money
carelessly because we don’t have a money doesn’t grow man kann sich das
on trees ifml.  Geld nicht einfach aus
lot of it, you know!
den Rippen schneiden

Skill up! Audio

You can do an exercise on
Business Spotlight Audio

ISSUE 36 SKILL UP! 13

 CLOSE RELATIONS

BY ALL ACCOUNTS
An important word family connected to the finances of a company is centred around
“account”. How many words from this family do you know? Can you use them correctly?

+ able accountable non + nonaccountable

un + unaccountable +y unaccountably

+ ility accountability un + unaccountability

+ ness accountableness
account
+y accountably

+ ancy accountancy

+ ant accountant

+ ed accounted un + unaccounted

+ ing accounting

+s accounts

account Konto; Kunde/Kundin; Bericht

account (for sth.) sich (für etw.) verantworten; (über etw.) Rechenschaft ablegen
accountability  Verantwortlichkeit; Rechenschaftspflicht
accountable  verantwortlich; rechenschaftspflichtig; buchungspflichtig; strafmündig
accountableness  Verantwortlichkeit; Rechenschaftspflicht
accountably  verantwortlich; rechenschaftspflichtig
accountancy  Rechnungswesen, Buchhaltung; Buchführung; Steuerberatung
accountant  Buchhalter(in); Wirtschafts-, Rechnungsprüfer(in); Steuerberater(in)
accounted (for) ausgewiesen, berücksichtigt
accounting  Rechnungswesen, Buchhaltung; Rechnungsführung
accounts  Konten; Rechnungsbücher; Jahresabschluss
nonaccountable  nicht verantwortlich; nicht rechenschaftspflichtig
unaccountability Nichtverantwortlichkeit
unaccountable unerklärlich; niemandem unterstellt
F1 Online

unaccountably unerklärlicherweise
unaccounted (for) nicht ausgewiesen; unberücksichtigt
14 SKILL UP!
 At work: doing
the accounts

Use the family: account

l 
Bank officials who knowingly and
wilfully violate the laws should be
held accountable.
l The latest scandal points to a dan-
gerous lack of accountability.
l The finance minister says borrowing
is falling, but critics say he is using
creative accounting to calculate the
deficit.
l 
He’s just been made an associate
partner of one of the country’s lead-
ing firms of chartered accountants
and business advisers.
l According to the report, $300 million
spent by the Defence Department in
Afghanistan are unaccounted for.

iStock
IN ACTION: ACCOUNT
An account is an arrangement with a bank to keep your money there and to allow you to take it
➜ 
out when you need to:
“The bank called to tell me that £2,000 had been withdrawn from my account — in Uganda!”
An account can be an agreement with a shop or business that allows you to buy things and pay
➜ 
for them later:
“Could you charge it to my account, please?”
➜ An account can also mean a regular customer who does business with a company:
“We are looking for someone to manage relationships with one of our key accounts.”
➜ An account is also a written or spoken description of an event:
“The witness’s account was not consistent with the official version of events.”
➜ By all accounts means “as said by most people”:
“By all accounts, the service at the restaurant leaves a lot to be desired.”
An official record of all the money a person or company has spent and received is known as the
➜ 
accounts (plural) and, more informally, “the books”:
“If you are self-employed, doing your own accounts can be a good way to keep costs down.”

An accountant is reading nursery rhymes to her young child. When she is

finished, her son asks a question. She answers: “No, son. Little Bo Peep losing
her sheep wouldn’t be tax-deductible — but I like your thinking”
Little Bo Peep is a traditional English nursery rhyme about a shepherdess who loses her sheep.
Try looking it up on Wikipedia.

ISSUE 36 SKILL UP! 15

SMALL TALK

IMPROPER PRACTICES
There’s nothing like a scandal to get people talking! Here, we provide you with useful
vocabulary and expressions.

allegation Vorwurf
at it: everyone’s ~ etwa: jeder macht’s
Situation:
bid Angebot; hier: Versuch
Colleagues Gemma and Brent are talking about
(im Pressejargon)
a recent corporate scandal.
blame: be to ~ (an etw.) schuld
(for sth.) sein
carmaker Autobauer
Gemma: I don’t know how they got away with it for so consequence Folge
long. corporate governance Unternehmensführung
Brent: Got away with what? What are you talking [(gVv&nEns]
about? corporate scandal Firmenskandal
Gemma: I was just reading about the carmaker that corruption Korruption
rigged emissions tests on diesel engines creative accounting kreative Buchführung,
— all in a bid to increase sales in the US. ifml. Fälschen von
Geschäftsbüchern
Brent: It’s just another corporate scandal, isn’t
emissions test Abgastest
it? Sadly, improper practices have become
enforce legislation Gesetze durchsetzen
the norm. Everyone’s at it: fraud, tax eva-
failing Fehler, Versagen
sion, creative accounting...
fine Geldstrafe
Gemma: It’s maybe “just another scandal”, as you
fraud [frO:d] Betrug
say, but it’s going to take them ages to re-
get away with sth. mit etw. davonkommen
cover from this. The consequences will be
hit Schlag
immense! The share price has plummeted;
impact Auswirkung
they’ll have to pay billions in fines...
improper practice rechtswidrige Praxis
Brent: And quite right, too! They had such a trust- loophole Lücke, Hintertürchen
worthy public image.
norm: become the ~ zur Regel werden
Gemma: I know, but I read in the FT that there were plummet [(plVmIt] absacken, stark fallen
clear signs of corporate governance fail- public image öffentliches Ansehen
ings. There had been quite a few allega- recover from sth. sich von etw. erholen
tions of corruption over the past decade. regulator Aufsichtsbehörde
Brent: The regulators are definitely to blame — rig sth. etw. manipulieren
they failed to enforce legislation. But you share price Aktienkurs
know what they say: where there’s a rule, tax evasion Steuerhinterziehung
there’s a loophole! trustworthy vertrauenswürdig
Gemma: True. It’s a hit to all diesel cars, really, and
it’ll have a huge impact on the rest of the
automotive industry.
Brent: Yeah, I know! The good news is: sales of
electric cars are up.

Just another
scandal!
16 SKILL UP! ISSUE 36
iStock
 Guilty as charged!

The Enron Scandal

T he name Enron is synonymous with corporate abuse and accounting fraud. The
company was founded in 1985. With 21,000 staff in more than 40 countries, Enron
had grown to be the USA’s seventh-largest company in only 15 years. The energy giant’s
success turned out to be the result of an elaborate scam that had regulators fooled
for years. Enron lied about its profits and was accused of a variety of shady dealings,
including concealing debts and overstating stockholders’ equity.
The investigation brought down the accounting firm Arthur Andersen, whose auditors
were found guilty of destroying documents incriminating Enron. The company finally
folded in 2001.
accounting fraud Bilanzfälschung
[frO:d]
auditor Wirtschaftsprüfer(in)
bring sb. down jmdn. zu Fall bringen
conceal debts Schulden
verheimlichen
corporate abuse unternehmerischer
Missbrauch
energy giant Energieriese
find sb. guilty jmdn. für schuldig
befinden
Moodboard

incriminate sb. jmdn. belasten

[In(krImIneIt]
SKILL UP! investigation Ermittlung
Build and activate your vocabulary by doing some overstate sth. etw. überbewerten
research into corporate scandals. Look up Enron on scam ifml. Schwindel
YouTube or on Investopedia.com. Note down useful shady dealings fragwürdige
vocabulary you come across, then try to summarize ifml. Geschäfte
what you read using the vocabulary you wrote down.

Cooking the books

accounting irregularities Bilanzverschleierung
consolidation method Konsolidierungsmethode
contingent liability [kEn(tIndZEnt] Eventualverbindlichkeit
equity method Equity-Methode, Nettomethode
fabricated revenue fingierte Einnahmen
financial statement Bericht über die Finanz-, Vermögens- und Ertragslage
inflate earnings Erträge zu hoch angeben
manipulate the balance sheet die Bilanz manipulieren
overstate assets Vermögen(swerte) überbewerten
pension shortfall Deckungslücke bei Pensionsverpflichtungen
understate liabilities Verbindlichkeiten zu niedrig angeben

ISSUE 36 SKILL UP! 17

YOUR PROFILE

BOOST YOUR FINANCES

Personalize this guide by adding your own example sentences — which should reflect
words and expressions you need in order to talk about your circumstances.

A WORTHWHILE INVESTMENT
Have you ever invested money on the stock market? What was your experience? If you have never invested
money on the stock market, why not?

Using the vocabulary from Word Bank (pp. 6–7), describe the systems in your country that make sure
companies are run fairly for all stakeholders.

Look at the idiomatic expressions on pages 12–13. Which idioms do you need for your job?

SMALL TALK: THEY DID WHAT?

Imagine you are talking to a good friend about a corporate scandal you have heard about in the news.
Write a mini-dialogue, using expressions from our Small Talk section (pp. 16–17).

18 SKILL UP! ISSUE 36

 PREVIEW

WEATHER
Whether you’re singing in the rain or
IMPRESSUM blowing in the wind, our next Skill Up!
HERAUSGEBER UND VERLAGSLEITER: takes a look at the language you need to
Rudolf Spindler
CHEFREDAKTEUR: Dr. Ian McMaster talk about the weather.
GESCHÄFTSFÜHRENDE REDAKTEURIN (CvD):
Maja Sirola FALSE FRIENDS: grade, match
AUTORIN: Dagmar Taylor
REDAKTION: Margaret Davis, Hildegard Rudolph, WORD BANK: a force of nature
Michele Tilgner
BILDREDAKTION: Sarah Gough (Leitung), PICTURE THIS: Now, the weather!
Thorsten Mansch
GESTALTUNG: loop grafikdesign München
PRODUKTIONSLEITUNG: Ingrid Sturm
VERTRIEBSLEITUNG: Monika Wohlgemuth
MARKETINGLEITUNG: Holger Hofmann
ANZEIGENLEITUNG: Axel Zettler also:
VERLAG und REDAKTION:
Spotlight Verlag GmbH
SMALL TALK
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ISSUE 36 small talk in

the rain
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