SECTION A
In this section you will hear a mini-lecture. You will hear the lecture ONCE ONLE While listening to the lecture, take notes on the important points. Your notes will not be marked, but you will need them to complete a gap-filling task On ANSWER SHEET ONE after the mini-lecture. Use the blank paper for note-taking.
Now listen to the mini-lecture.
The Stock Market
The best way to explain how the stock market works is to (1)_____that you get together with (1)_____
four of your friends and form a company to produce a soda. You find that you need ＄ 600 for the
expenses involved in starting the business.
If you gave ＄100, then you will receive 10 of these sheets. Each sheet, which is called a stock
(2)_____, actually indicates that you own 1 share of stock in the company. To own a share signifies (2)_____
that you are a pan owner of the company.
Imagine now that when people taste the soda they want to drink more and more of it. In fact,
business is so good. Thus, the price will be higher. If you want to sell some or all, you will get more money.
On the contrary, you will lose some money.
Most companies today get started in exactly the same way as the small soda company above.
When a company is first organized and shares are sold, it is relatively simple to (3)_____the value (3)_____
of each share; because all the shares together (4)_____the total value of the company. (4)_____
But how can you go about buying stocks It is very unlikely that you would (5)_____ (5)_____
know someone who happens to own shares in the company in which you wish to invest.
Hence, you will probably go to a (6)_____. He, in turns will go to a stock market. There he (6)_____
will (7)_____of other brokers if they know of anyone who would like to sell the stock that you (7)_____
want to purchase. In that event, your broker will arrange to buy the stock for you and then bill you
not only for the amount he had to pays but also a small additional fee to cover the cost of his services.
In the event you want to sell some stocks that you hold, you would follow exactly the same (8) (8) _____
_____.Now, however, the broker would (9)_____a small amount to pay for his services. Thus, (9)_____
you have to pay the broker. This isn’t all, though. You may also have to pay a tax each time you sell
stock—and, sometimes when you buy it. In addition, the owners of the place where the stock is
bought or sold may also charge a small fee for the (10)_____of using their facilites. (10)_____