Finance (Professional English in Use)
Finance (Ian MacKenzie)
Professional English in Use
Professional English in Use Finance is part of a new series of Professional English in Use titles from Cambridge University Press. These books offer vocabulary reference and practice for specialist areas of professional English. It is designed for intermediate to upper-intermediate learners to help them to improve their financial vocabulary and - perhaps their knowledge of finance.
The book contains 50 units in four areas of finance:
- corporate finance;
- economics and trade.
There is also a Language reference section, giving examples of idioms used to describe changes in the price of financial assets, showing how to say and write numbers and how to stress English words; and listing differences between British and American financial vocabulary. At the end of each unit there is the Over to you section helping to practice the words and expressions in the unit in relation to professional situation of learners.
The section Basic terms composes 2 units:
1) The Money and income unit gives the classification of incomes (salary, overtime, bonus, fees etc.) and outgoings (living expenses, bills, health insurance etc.).
2) The Business finance unit gives an idea of getting capital from borrowings, loans, issuing shares or equities, investing in shares, buying bonds, of revenues and financial statements with balance sheet and profit and loss account.
А. The Accounting section includes 16 units:
1. The Accounting and accountancy unit dealing with accounting system, bookkeeping, management accounting; internal and external auditing; laws, rules and standards relating to accounting, established in different countries.
2. The Bookkeeping unit goes into double-entry bookkeeping system recording both transaction aspects – debit and credit, day books and ledgers providing records of transactions, balancing the books by preparing a trial balance.
3. The Company law 1 unit reviews the legal status of partnerships, distinguishes the idea of company as a legal entity with limited liability in general and procedures of corporate governance as well as founding companies by drawing up Articles of Association and Memorandum of association.
4. The Company law 2 unit distinguishes between private and public companies in the USA and in the UK (listed companies and quoted companies), explains principals of reports and describes the procedure of Annual General Meeting and of Extraordinary General Meeting by perforce.
5. The Accounting policies and standards unit describes methods of valuation and measurement and gives historical cost principle.
6. The Accounting assumptions and principles unit defines principles which are to be followed when writing accounts and financial statements.
7. The Depreciation and amortization unit discusses current assets like cash and stock and fixed assets such as buildings and equipment, goes into valuation of different countries and describes the straight-line method as the most common system of depreciation for fixed assets.
8. The Auditing unit gives an internal and external examination of a company’s accounts and cases of irregularities.
9-11. The balance sheet (1 – 3) units give detailed description of the structure of a balance sheet, describe fixed and current assets and valuation, distinguish between tangible and intangible assets,review accrued expenses and shareholders’ equity on the balance sheet.
12. The other financial statements unit studies the profit and loss account and income and expenditure account for non-profit organizations as well as the cash flow statement relating to operations, investing, financing.
13-14. Financial ratios (1-2) units explain the ratio measures such as liquidity, solvency, efficiency and discuss the shareholders’ interest in ratios relating to a company’s share price, earnings, and dividend payments as well as describe various profitability ratios (gross profit margin, return on assets, return on equity) and leverage.
15. The Cost accounting unit covers direct and indirect, fixed and variable costs and breakeven analysis comparing expected sales of the new product with expected costs.
16. The Pricing unit comprises manufacturers’ pricing strategies such as unit cost, sales and profit target, launch, market share etc. and retail pricing strategies such as loss-leader pricing, odd pricing, elasticity.
В. There are 9 units in the Personal banking section.
1. The Personal banking unit includes current account, banking products and services, telephone, internet and e-banking.
2. The Commercial and retail banking unit differentiates between commercial and retail banks and gives explanation of such names as credit, loans and risks.
3. The Financial institutions unit gives types of financial institutions (investment banks, insurance companies and building societies), describes financial deregulation and distinguishes among specialized banks (central, private, clearing banks and non-bank financial intermediaries).
4. The Investment banking unit describes principles of investment banks, their acting as firms’ representations in mergers and acquisitions as well as their consulting and research activities.
5. The Central banking unit reflects functions of central bank, explains how the central bank supervise the commercial banks and gives idea about exchange rates with foreign currencies.
6. In the Interest rates unit you learn about interest rates and monetary policy as well as different interest rates, for example discount rate, base rate, credit rating.
7. The Money markets unit deals with the problems of borrowing or investing short-term capital, common money market instruments such as treasure bills, commercial papers, certificates of deposit and repos.
8. The Islamic banking unit consists of following parts: interest-free banking, types of accounts, leasing and short-term loans.
9. The Money supply and control unit deals with problems of money supply, ways of measuring money, spending money, changing the money supply and monetarism.
С. The Corporate finance covers 15 subjects:
1. The Venture capital unit discusses the rising of capital by new businesses and ways of it’s returning.
2-3. The Stocks and shares (1 – 2) units differ among stocks, shares and equities, describe the way of going public of a successful existing company, explain ordinary and preference shares as well as possibilities of buying and selling shares, give an idea of rights issue, scrip issue, capitalization and bonus issue and classify the stocks and shares in different categories such as blue chips, growth stocks, income stocks, defensive stocks and value stocks.
4. The Shareholders unit describes different kinds of investors, review dividends and capitals gains and represents the activities of speculators.
5. The Share prices unit studies factors which influence share prices, deals with theories about whether share price changes can be predicted and distinguishes between systematic and unsystematic risks.
6. The Bonds unit gives the names of government and corporate bonds, deals with prices and yields and explains other types of bonds such as convertibles, zero coupon bonds, fallen angels etc.
7. The Futures unit deals with forward and futures contracts and gives explanation of financial futures as standardized contracts, traded on exchanges.
8. The Derivatives unit comments options and derivatives, describes the situations when options are out-of-the-money and in-the-money and discusses warrants and swaps.
9. The Asset management unit deals with allocating and diversifying assets, reviews different goals of investors which are regular incomes, preserves etc. and distinguishes between active and passive investments.
10. The Hedge funds and structured products unit deals with private investment funds for wealthy investors, describes the way of using of leverage and arbitrage by hedge funds and points out structured products.
11. The Describing charts and graphs unit gives the vocabulary for describing upward and downward movements, the quantity and the speed of a change, reaching the highest and the lowest points.
12. The Mergers and takeovers unit goes into merging process of companies, takeover or acquisition procedure, differentiate between friendly and hostile takeover bids and shows horizontal and vertical integration of companies.
13. The Leveraged buyouts unit keeps under review conglomerates and gives the explanation of the meaning leveraged as largely financed by borrowed capital.
14. The Financial planning unit involves calculating whether new projects would be profitable as well as calculating of discounted cash flow value of an investment and deals with working out of the net present value of each project.
15. The Financial regulation and supervision unit gives an idea of government and internal controls in the financial services industry and describes the Sarbanes-Oxley Act.
E. The Economic and Trade section gives an overview of 8 topics:
1. The International trade unit deals with philosophy of international trade, goes into imports and exports of each country and comments protecting measures in various areas of the economy taken by governments.
2. The Exchange rates unit discusses why exchange rates change, reviews fixed and floating exchange rates from historical point of view and explains why governments intervenes in exchange markets.
3. The Financial international trade unit gives description of documentary credits, bills of exchange and export documents such as commercial invoice, bill of lading, insurance certificate etc.
4. The Incoterms unit discusses transport and additional costs, the E and F terms as well as the C and D terms.
5. The Insurance unit includes insuring against risks, life insurance and savings and describes activities of insurance companies.
6. The Business cycle unit describes periods of market economies, deals with fiscal and monetary policies of governments and central banks.
7. The Taxation unit composes direct and indirect taxes as well as methods of tax avoidance.
8. The Business plans unit describes business plans for market beginners and existing companies and explains the sense of financial analysis.