VocabularyProject Sample 5

8/12/2019 VocabularyProject Sample 5

1/80

Paula Pellegrini , 1st year of study, International Affairs

Coordinator: prof. Veronica Armau

Financial Glossary

No. Word / Expression Definition Context Source

1 Catalyst An agent that provokes or

speeds significant change or

action

The fire that swept

through the Triangle

Shirtwaist factory in

New York in 1911,

killing 146 people, was

the catalystfor big

improvements in

industrial working

conditions in America.

http://www.economist.com/news/business/21577078-after-dhaka-

factory-collapse-foreign-clothing-firms-are-under-pressure-improve-

working

2 Trade union An organization of employees

within a trade or professionthat has the objective of

representing its members

interests, primarily through

improving pay and working

conditions

Its trade unionsare

suppressed moreaggressively than they

ever were in America.


factory-collapse-foreign-clothing-firms-are-under-pressure-improve-working

3 Regulation 1. Law: Rule based onand meant to carry out

a specific piece of

legislation (such as for

the protection of

environment).Regulations are

enforced usually by a

regulatory agency

formed or mandated

to carry out the

It already has building

regulationsthat

should have

prevented the

collapsebut they

were not enforced.



working
http://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-working


2/80



purpose or provisions

of a legislation. Also

called regulatory

requirement

2. General: Principle orrule (with or withoutthe coercive power of

law employed in

controlling, directing,

or managing an

activity, organization,

or system

4 Retailer A business or person that sells

goods to the end consumer, as

opposed to a wholesaler orsupplier, who normally sell

their goods to another

business

Primark, a low-cost

British retailer, and

Loblaw, the Canadianowner of the Joe Fresh

brand, whose wares

had been found in the

rubble, have both

agreed to pay

compensation to

victims and their

families.



working

5 Contractor Independent entity that agrees

to furnish certain number or

quantity of goods, material,equipment, personnel, and/or

services that meet or exceed

stated requirements or

specifications, at a mutually

agreed upon price and within a

Walmart also recently

introduced stricter

fire-safety audits, anda zero tolerance

policy towards

contractorscaught

using unauthorised

factories to make



working
http://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-working


3/80



specified timeframe to another

independent entity called

contractee, principal, or

project owner. Also called

construction firm

Walmart products.

6 Compensation Amount of money awrongdoer is required to pay

to a victim (or the victim's

beneficiary) as a compensation

for the damage or injury

caused by his or her actions or

inactions. Such damages vary

with the kind of damage or

injury sustained by the victim

Primark, a low-costBritish retailer, and

Loblaw, the Canadian

owner of the Joe Fresh

brand, whose wares

had been found in the

rubble, have both

agreed to pay

compensationto

victims and their

families.

http://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-

working

7 Audit 1. Quality control:Periodic (usually everysix months) onsite-

verification (by a

certification authority)

to ascertain whether

or not a documented

quality system is being

effectively

implemented

2. An unbiasedexamination andevaluation of the

financial statements of

an organization. It can

be done internally (by

employees of the

Walmart also recentlyintroduced stricter

fire-safety audits, and

a zero tolerance

policy towards

contractors caught

using unauthorised

factories to make

Walmart products.


working


4/80



organization) or

externally (by an

outside firm)

3. An IRS examination ofa taxpayer's return or

other transactions. TheIRS performs this

examination to verify

the accuracy of these

filings.

8 To gripe To complain about something

to someone

Critics gripethat the

existing system for

auditing the complex

and constantlychanging supply chain

is little more than a

box-ticking exercise.



working

9 Cursory Performed with haste and

scant attention to detail

Scott Nova of the

Worker Rights

Consortium, a

pressure group, says

that many audits

covered other

important issues such

as working hours andchild labour but, at

least until recently,

lacked even cursory

inspections of

factories structural



working


5/80



soundness or fire

exits.

10 Pressure group Non-profit and usually

voluntary organization whose

members have a common

cause for which they seek toinfluence political or corporate

decision makers to achieve a

declared objective. Whereas

interest groups try to defend a

cause (maintain the status

quo), the pressure groups try

to promote it (change the

status quo)

Scott Nova of the

Worker Rights

Consortium, a

pressure group, saysthat many audits

covered other

important issues such

as working hours and

child labour but, at

least until recently,

lacked even cursory

inspections of

factories structural

soundness or fire

exits.



working

11 Non-governmental

organization (NGO)

Private sector, voluntary (and

usually non-profit and non-

sectarian) organization that

contributes to, or participates

in, cooperation projects,

education, training or other

humanitarian, progressive, or

watchdog activities. Some of

them are accredited by the

UN, and some collect

donations for distributionamong disadvantaged or

distressed people

The latest meeting

took place on April

29th in Germany, with

a couple of dozen

firms and some NGOs,

hosted by GIZ, a

German government

agency.



working

12 Across-the-board 1. General: Action ordecision that affects

everyone (more or less

Im not normally one

to call for

disinvestment in a



working
http://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-workinghttp://www.economist.com/news/business/21577078-after-dhaka-factory-collapse-foreign-clothing-firms-are-under-pressure-improve-working


6/80



the same way) within a

particular geographical

area, market, or

organization.

2. Broadcasting: Radio ortelevision programscheduled to be aired

for all weekdays, at the

same time and on the

same station.

3. Securities trading:Stockmarket

movement that affects

all or most stocks in

the same manner

country, but you have

to ask if it is the right

thing to do given the

massive across-the-

boardfailure in

Bangladesh.

13 Binding contract

An agreement in writing

between two or more

individuals or entities in which

a court can impose penalties in

the event one party attempts

to negate on his or her

promise as set forth in the

signed document

Worker Rights

Consortium sought to

rally support for its

proposal that foreign

clothing giants sign a

binding agreementto

finance the upgrading

of factories in

Bangladesh.



working

14 Garment An article of clothing Spread over a fewyears, that would

amount to only a few

cents on the cost of

each garment

produced, he


working


7/80



calculates.

15 Investment bank Financial institution that

provides large amounts of

long-term fixed capital,

primarily for established firms.

Investment banks generallytake an equity stake in the

borrower firm to exercise

some influence on its direction

and operations. They also act

(often jointly) as financial

intermediaries by underwriting

the sale of new securities.

Called merchant bank in the

UK

FOR a few tense

weeks in 2008, as

investment

bankexecutives

huddled behind theimposing doors of the

New York Federal

Reserve, Wall Street

seemed to be

collapsing around

them

http://www.economist.com/news/leaders/21577370-american-

investment-banks-dominate-global-finance-once-more-thats-not-

necessarily-good

16 Rot Decomposition, disease,

problem

American

International Group(AIG) and Citigroup

had to be bailed out

and the rotseemed to

be spreading.


investment-banks-dominate-global-finance-once-more-thats-not-necessarily-good

17 Comeuppance A deserved rebuke or penalty Across the Atlantic,

European politicians

saw this as the timely

comeuppanceof

American capitalism.



necessarily-good

18 Capitalism Economic system based (to a

varying degree) on privateownership of the factors of

production (capital, land, and

labor) employed in generation

of profits. It is the oldest and

most common of all economic

Across the Atlantic,

European politicianssaw this as the timely

comeuppance of

American capitalism.


http://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-good


8/80



systems and, in general, is

synonymous with free market

system

19 Hedge fund Exceptionally risky and largely

unregulated US investment

partnership which employsaggressive leverage to multiply

gains (or losses) from

fluctuations in the prices of

financial instruments (bonds,

notes, securities). Hedge funds

are restricted under US law to

less than 100 investors who

typically put in a minimum of

one million dollars each

Angela Merkel,

Germanys chancellor,

blamed her peers inWashington for not

having regulated

banks and hedge

fundsmore rigorously.



necessarily-good

20 To pounce To seize something swiftly and

eagerly

Barclays quickly

pouncedon thecarcass of Lehman

Brothers, buying its

American operations

in what Bob Diamond,

the head of its

investment bank at

the time, called an

incredible

opportunity to gain

entry to the American

market.



21 Carcass A framework or basic structure Barclays quickly

pounced on the

carcassof Lehman

Brothers, buying its

American operations



necessarily-good
http://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-good


9/80



in what Bob Diamond,

the head of its

investment bank at

the time, called an

incredible

opportunity to gainentry to the American

market.

22 Market share A percentage of total sales

volume in a market captured

by a brand, product, or

company

Deutsche Bank, a

German giant, also

expanded to take

market sharefrom

American rivals.



necessarily-good

23 Capital market A financial market that works

as a conduit for demand and

supply of debt and equity

capital. It channels the moneyprovided by savers and

depository institutions (banks,

credit unions, insurance

companies, etc.) to borrowers

and investees through a

variety of financial instruments

(bonds, notes, shares) called

securities.

A capital market is not a

compact unit, but a highly

decentralized system made upof three major parts: (1) stock

market, (2) bond market, and

(3) money market. It also

works as an exchange for

trading existing claims on

The dominance that

American firms had

long exerted over

global capital marketsseemed to have come

to an abrupt end.



necessarily-good
http://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-good


10/80



capital in the form of shares

24 Resurgent Undergoing or tending toproduce resurgence (a

rising again into life,

activity, or prominence)

Almost five years on it

is Europes banks that

are on their knees and

Wall Street that is

resurgent.



necessarily-good

25 To shed To lose, to cut Switzerlands two

biggest banks, UBS

and Credit Suisse,

which were expanding

fast before the crisis,

are still shedding

assets.



necessarily-good

26 Asset 1. Accounting:Something that an

entity has acquired or

purchased, and thathas money value (its

cost, book value,

market value, or

residual value). An

asset can be (1)

something physical,

such as cash,

machinery, inventory,

land and building, (2)

an enforceable claim

against others, such asaccounts receivable,

(3) right, such as

copyright, patent,

trademark, or (4) an

assumption, such as

Switzerlands two

biggest banks, UBS

and Credit Suisse,

which were expandingfast before the crisis,

are still shedding

assets.



necessarily-good


11/80



goodwill

2. Something valuablethat an entity owns,

benefits from, or has

use of, in generating

income27 Ward A means of protection; a

defense

Royal Bank of

Scotland, which for a

brief time broke into

the ranks of the

worlds ten-biggest

investment banks,

remains a wardof the

British government.



necessarily-good

28 To slump To fall or sink suddenly

To drop or slide down

suddenly

The share of the

investment-banking

market held byEuropean banks

hasslumpedby a fifth

since the crisis (see

our special report),

with many of the gains

going to Wall Streets

surviving behemoths.



necessarily-good

29 Behemoths Something of monstrous size,

power, or appearance

The share of the

investment-banking

market held by

European banks hasslumped by a fifth

since the crisis (see

our special report),

with many of the gains

going to Wall Streets



necessarily-good


12/80



surviving behemoths.

30 Revenue The income generated from

sale of goods or services, or

any other use of capital or

assets, associated with the

main operations of anorganization before any costs

or expenses are deducted.

Revenue is shown usually as

the top item in an income

(profit and loss) statement

from which all charges, costs,

and expenses are subtracted

to arrive at net income. Also

called sales, or (in the UK)

turnover

JPMorgan Chase,

Goldman Sachs and

Citigroup alone

account for a third of

the industrysrevenues.



necessarily-good

31 To crimp To be an inhibiting orrestraining influence on Both, however, facehostile regulations at

home and abroad that

seem likely to

crimptheir global

ambitions.

http://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-

necessarily-good

32 To reassert Strengthen or make more firm The industry over

which Wall Street is

reassertingitself is

very different from

the one it dominated

half a decade ago.



necessarily-good

33 Capital

requirements

Total financing needs (Long-

term capital + Working capital)

of a firm arising from its

current and future plans

Higher capital

requirementsand

other regulations,

including Americas

absurdly complicated



necessarily-good
http://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-good


13/80



(and still unfinished)

Dodd-Frank act, are

likely to erode the

profitability of the

industry.

34 To erode To diminish or destroy bydegrees Higher capitalrequirements and

other regulations,

including Americas

absurdly complicated

(and still unfinished)

Dodd-Frank act, are

likely to erodethe

profitability of the

industry.


necessarily-good

35 Balance - sheets A condensed statement that

shows the financial position ofan entity on a specified date

(usually the last day of an

accounting period)

European banks, in

contrast, arecontinuing to shrink

their balance-

sheetsand limp along

with insufficient

capital.



36 Equity 1. In terms ofinvestment

strategies, equity

(stocks) is one of

the principal asset

classes. The other

two are fixed-income (bonds) and

cash/cash-

equivalents. These

are used in asset

allocation planning

Deutsche Bank, which

had insisted it did not

need more equity, has

at last faced reality

and is raising almost

3 billion ($4 billion).



necessarily-good


14/80



to structure a

desired risk and

return profile for an

investor's portfolio2. A stock or any

other security

representing anownership interest

3. On a company'sbalance sheet, the

amount of the funds

contributed by the

owners (thestockholders) plus

the retained

earnings (or losses).

Also referred to as

"shareholders'

equity"37 Base pay The most basic sum of money

or hourly rate paid to an

employee of a business in

compensation for their work

efforts or time spent on the

job. An employee's base pay is

generally strictly financial in

nature and does not take into

account any other payments,

benefits or expense allowances

First, they are

specifying how much

banks can pay in

bonuses relative to

base pay.



necessarily-good

38 Retail banking Savings accounts, consumerloans, credit cards, etc., and

other such services provided to

individuals. Also called

consumer banking. See also

corporate banking and

Second, they aretrying to force banks

to hold more capital

and to make it easier

to allow them to fail

by, for instance,


necessarily-good


15/80



wholesale banking separating their retail

deposits from their

wholesale businesses.

39 Wholesale banking Banking services which (in

contrast to retail banking) are

offered only to governmentagencies, pension funds, other

institutional customers and to

corporations with strong

balance sheets and sound

income statements. These

services include cash

management, fleet and

equipment leasing, large-sum

loans, loan participation,

merchant banking, and trust

services

Second, they are

trying to force banks

to hold more capitaland to make it easier

to allow them to fail

by, for instance,

separating their retail

deposits from their

wholesalebusinesses.



necessarily-good

40 Subsidy Economic benefit (such as a

tax allowance or duty rebate)

or financial aid (such as a cash

grant or soft loan) provided by

a government to (1) support a

desirable activity (such as

exports), (2) keep prices of

staples low, (3) maintain the

income of the producers of

critical or strategic products,

(4) maintain employmentlevels, or (5) induce

investment to reduce

unemployment. The basic

characteristic of all subsidies is

to reduce the market price of

Switzerland and

Britain are making

progress in ending the

implicit taxpayer

subsidythat supports

banks that are too big

to fail.



necessarily-good


16/80



an item below its cost of

production. Also called

subvention

41 Subprime loan A loan with elevated fees and

interest, given to someone

with a lower credit score

Yet it is not obvious

that European firms or

taxpayers gain fromhaving national banks

that are good at

packaging and selling

American subprime

loans.



necessarily-good

42 Bail - outs A situation in which a business,

individual or government

offers money to a failing

business in order to prevent

the consequences that arise

from a business's downfall.Bailouts can take the form of

loans, bonds, stocks or cash.

They may or may not require

reimbursement

They bear the main

risk of future bail-

outs.



necessarily-good

43 IPOInitial Public

Offering

First offering of a firms' stock

(shares) on the stockmarket, at

the time it 'goes public.'

Because a stockmarket usually

values the stock on the

expectations of the firm's

future growth and income,IPOs are typically an

opportunity for the founders

and other early investors to

make high profits by cashing

their stockholdings

IPOfees are much

higher in America than

elsewhere (7% v 4%),

mainly because the

market is dominated

by a few big

investment banks.



necessarily-good


17/80



44 Buffers A means or device used as a

cushion against the shock of

fluctuations in business or

financial activity

Wall Streets new

titans say they are

already penalised by

new international

rules that insist they

have somewhat biggercapital buffersthan

smaller banks because

they pose a greater

risk to economies if

they fail.



necessarily-good

45 Surcharges Amount added on to a usual

charge for a specific product,

purpose, or service

Increasing the capital

surchargesfor big

banks would do more

for the stability of the

financial system than

the thicket of Dodd-Frank rules ever will.



necessarily-good

46 Thicket Something resembling a

thicket in density or

impenetrability

Density

Increasing the capital

surcharges for big

banks would do more

for the stability of the

financial system than

the thicketof Dodd-

Frank rules ever will.



necessarily-good

47 Joint venture New firm formed to achieve

specific objectives of a

partnership like temporaryarrangement between two or

more firms. JVs are

advantageous as a risk

reducing mechanism in new-

market penetration, and in

Verizon Wireless, the

joint ventureof

VerizonCommunications VZ -

0.15% and Vodafone ,

will distribute $7

billion to its parent

companies next

http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-

wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/
http://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-goodhttp://www.economist.com/news/leaders/21577370-american-investment-banks-dominate-global-finance-once-more-thats-not-necessarily-good


18/80



pooling of resource for large

projects. They, however,

present unique problems in

equity ownership, operational

control, and distribution of

profits (or losses). Researchindicates that two out of five

JV arrangements last less than

four years, and are dissolved in

acrimony

month, a surprise

decision that adds a

new wrinkle to the

relationship between

the owners.

48 Parent company Firm that owns or controls

other firms (called

subsidiaries) which are legal

entities in their own right. Also

called parent corporation

Verizon Wireless, the

joint venture of

Verizon

Communications VZ -

0.15% and Vodafone ,

will distribute $7

billion to its parentcompaniesnext

month, a surprise

decision that adds a

new wrinkle to the

relationship between

the owners.



49 Dividend A share of the after-tax profit

of a company, distributed to its

shareholders according to the

number and class of shares

held by them

The dividendwill be

paid June 25.



50 Majority stake The right to control a company

because you own a group of

shares that together are more

than any other shareholder

has.

The payout is an

unexpected move.

Verizon, able to

dictate the dividend

terms because of its


http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/


19/80



The ownership of 50% plus one

of the stock in a publicly-

traded company. This gives the

person or company holding

majority stake outright control

of the company's operations,especially the election of its

board of directors

majority stake, two

weeks ago said it

might use cash this

year to repay debt.

51 Debt A duty or obligation to pay

money, deliver goods, or

render service under an

express or implied agreement.

One who owes, is a debtor or

debitor; one to whom it is

owed, is a debtee, creditor, or

lender

The payout is an

unexpected move.

Verizon, able to

dictate the dividend

terms because of its

majority stake, two

weeks ago said it

might use cash this

year to repay debt.



52 Interest (in a

company)

Law: An advantage, claim,

duty, liability, right, and/or

title associated with a tangible

or intangible item. Legal claim

or right in or over an asset or

property is called a security

interest

Verizon, in effect, is

using the dividend to

force Vodafone to sell

its interestin the

company.



53 Merger Voluntary amalgamation of

two firms on roughly equal

terms into one new legal

entity. Mergers are effected byexchange of the pre-merger

stock (shares) for the stock of

the new firm. Owners of each

pre-merger firm continue as

owners, and the resources of

Verizon Wireless,

created in 2000 from a

mergerof Bell

Atlantics andVodafones mobile

businesses, is the

largest U.S. carrier,

followed by AT&T.


http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/http://www.forbes.com/sites/abrambrown/2013/05/14/verizon-wireless-to-pay-a-massive-and-unepexected-7b-dividend-to-owners/


20/80



the merging entities are

pooled for the benefit of the

new entity. If the merged

entities were competitors, the

merger is called horizontal

integration, if they weresupplier or customer of one

another, it is called vertical

integration

54 Contingency 1. Existing situationwhose result is

unknown or

unpredictable.

2. Possible event thatmust be prepared for

Stock Exchanges Shift

To ContingencyPlans

As Sandy Wreaks

Havoc

http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-

nasdaq-to-shut-trading-hurricane-sandy/

55 Trading The business of buying and

selling commodities;commerce

U.S. tradingcame to a

halt Monday morningand will remain at a

standstill Tuesday, as

Hurricane Sandy

drenches the East

Coast.



56 Stock exchange Organized and regulated

financial market where

securities (bonds, notes,

shares) are bought and sold at

prices governed by the forces

of demand and supply. Stock

exchanges basically serve as

(1) primary markets where

corporations, governments,

municipalities, and other

incorporated bodies can raise

The NYSE and Nasdaq

stock exchangehope

to reopen Wednesday,

after stock and bond

exchanges already

called off Monday or

ended early.


http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/


21/80



capital by channeling savings

of the investors into

productive ventures; and (2)

secondary markets where

investors can sell their

securities to other investors

for cash, thus reducing the risk

of investment and maintaining

liquidity in the system. Stock

exchanges impose stringent

rules, listing requirements, and

statutory requirements that

are binding on all listed and

trading parties

57 Bond A debt instrument that

certifies a contract between

the borrower (bond issuer) and

the lender (bondholder) as

spelled out in the bond

indenture. The issuer

(company, government,

municipality) pledges to pay

the loan principal (par value of

the bond) to the bondholder

on a fixed date (maturity date)

as well as a fixed rate of

interest for the life of the bond

The NYSE and Nasdaq

stock exchange hope

to reopen Wednesday,

after stock and bond

exchanges already

called off Monday or

ended early.



58 Commodity

exchange

Open and organized

marketplace where ownership

titles to standardized

quantities or volumes of

certain commodities (at a

specified price and to be

Meanwhile, the CME

Group plans to close

the trading floor of

the Nymex

commodities

exchange, moving it to


http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/http://www.forbes.com/sites/abrambrown/2012/10/29/nyse-nasdaq-to-shut-trading-hurricane-sandy/


22/80



delivered on a specified date)

are traded by its members.

Although samples of the

commodities are physically

examined and graded, physical

delivery of the commodity

rarely occurs because the

delivery contracts are usually

exchanged or closed out

(traded out) before their

expiration date. Commodity

exchanges are divided roughly

into three main types: metals

exchanges, fuels exchanges,

and soft (agricultural)

commodity exchanges. Other

exchanges deal in currencies

and commodity indices

Documents

VocabularyProject Sample 5