Business English Lesson – Advanced Level''''s archiveFire Insurance doc

Business English Lesson – Advanced Level's archive
Fire Insurance
1. If insurance data suggests that a serious fire is likely to
occur once in 25 years, then the rate of occurrence
is 1/25 = 0.04.

annualized
average
expanded
extrapolated
2. Here's something to consider for those of you who may
be selling covered calls on stocks you already own: some
folks are reluctant to sell covered calls on stocks because
they are concerned about having the stock called
from them.

away
out
over
(none)
3. yield is the dividend or coupon rate stated as a
percentage of the security's present market price: for
common stock, it is calculated by dividing its annual
dividend by its market price, and for preferred stocks, the
contractual dividend is divided by the market price.

Anticipated
Expected
Indicated
Projected
4. Loans from a foreign parent to a Canadian subsidiary

cannot fit within the exemption, so corporations have
attempted to structure intercorporate debt in other ways,
including ' ' loans, where cash is loaned from a
foreign parent to an arm's length foreign company that
then lends to the Canadian subsidiary.

back-to-back
belly-to-belly
side-to-side
top-to-bottom
5. The interest earned during the first year is found with
the formula for simple interest; if the deposit earns
interest, the interest earned in the second year is
calculated from the total amount on deposit at the end of
the first year.

accumulated
compound
extended
multiple
6. A company whose shares are traded on the so-called
' sheets' is commonly one that does not meet the
minimal criteria for capitalization and number of
shareholders that are required by the NASDAQ and OTC
and most exchanges to be listed there.

black
pink
red
yellow

7. When a dealer sells or leases a car, he always receives
cash, whether it's directly from the customer, or from a
company or bank who has loaned a customer the
money.

finance
investment
lading
underwriting
8. The odd lot of one eighth or one quarter of a point
was one of the ways that the odd lot broker made money,
but these days there are no odd lot brokers; small stock
trades, whether for 50 shares or 100 shares, are handled
by computers rather than by people.

addition
differential
discount
premium
9. Like the 401(k), the 12 1 fund is named after a
section of a federal law — in this case, the Investment
Company Act of 1940; the charge is for marketing and
distributing the fund — in other words current investors
foot the bill to win new investors.

a
b
c
d
10. The cost of debt which has already been issued

is the rate of interest (the internal rate of return) which
equates the current market price with the discounted
future cash flow from the security.

allowance
capital
liability
service