COMMODITY EXCHANGES, AUCTIONS, TENDERS
Commodity Exchanges deal in raw materials and some items of produce, such as cotton, wheat vegetable oils, etc. As these goods can be accurately graded and the grades practically remain unchanged every year. The goods are bought and sold at commodity exchanges according to grades or standards, and on the basis of standard contract terms. And commodity exchanges are called accordingly: the Wheat Exchange, the Metal Exchanges and so on.
In Great Britain you can take part in sessions at the London Metal Exchange, the London Commodity Exchange dealing in cocoa, rubber and sugar, the Liverpool Cotton and Corn Exchanges or Bradford Wool Exchange.
Nowadays Commodity Exchanges are loosing their role as markets of physical goods and are becoming mainly futures exchanges where deals are chiefly made for speculation purposes or for hedging.
The goods like fur and tea, bristles and spices whose quality varies from year to year, from lot to lot cannot be accurately graded and are sold at auctions according to sample.
Before the auction begins, the lots are inspected by future buyers and then sold to the highest bidder.
Horses or other animals are also sold and bought at auctions.
International auctions in Russia have been held since 1937. V/O Russian-pushnina is arranging fur auctions in ST. Petersburg. V/O Prodintort has been arranging sales of race horses by auction since 1965.
Trade by tenders is frequently used in developing countries for construction work or for delivery of goods. General terms and conditions of the future deal are announced beforehand and the contract is given to the suppliers who offered the lowest price and the most favorable terms.
:
commodity exchanges
auction
tender
item ( , ), , ; (/), , ,
produce , /
to grade ,
to remain
to remain unchanged
mainly
futures ,
speculation
hedging ,
to vary , ,
various ,
lot ,
sample ,
to inspect ,
bidder ,
to announce ,
supplier
favourable ( , ..)
beforehand
AGENTS AND DISTRIBUTORS
Big companies of Great Britain have their own network of distributive organization to sell their goods at home and abroad. But smaller companies prefer doing their business abroad through intermediaries: agents and distributors.
The relations between commercial Agents and their Principals are determined by agency agreements on a commission or Consignment Basis, the difference being that the consignment agent sells the goods in his name and for his principals account like a commission agent and in addition he pays duties and taxes as well as for obtaining the import licence if necessary and often for advertising and for keeping the goods in consignment warehouse and gets a higher commission accordingly. Also, a consignment agent may have to provide technical advice and after-sales service to customers.
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Any overseas agency agreement should include: in detail all the duties and obligations to be undertaken by both parties. The main purpose of an Agent is seeking out customers and contracting with them on the Principals behalf for the sale of the Principals products in his country.
It is necessary to distinguish clearly between the Agent and the Distributor. The essential difference is that whereas the commercial Agent is engaged in the negotiation with customers about a contract for the sale of goods on behalf of a principal and for his account for which the Agent reserves an agreed commission, the Distributor operates on his account as an independent purchases for sale of the Suppliers products, getting his remuneration from whatever profit he may make out of these sales. In the former case the Principal usually incurs the obligation to supply to, and the right to be paid direct by the customer; in the latter it is the Distributor who enjoys all rights and incurs all liabilities attached to contracts of supply.
The appointment of a sole and exclusive Distributor of his products in a foreign country can and usually does hold considerable advantages for the Supplier. Where the Distributor is a specialist trader, his knowledge of local trading and possession of a distributive network in a given territory will be of invaluable assistance to a supplier wishing to enter or expand in that market. Besides, local legal and linguistic problems are overcome; sales are more easily promoted and marketing made more intensive; and continuity of supply and the rationalization of distribution are made more effective. Finally, adequate stocks will enable to keep the market regularly and speedily supplied and before-and after-sales service where necessary is readily provided.
The relations between the Distributor and the Supplier are determined by a distributorship agreement (contract), stating that the Supplier grants to the Distributor the sole and exclusive right to purchase from the Supplier certain specified goods for sale in a given territory.
:
network (, )
to prefer
agent
principal
on consignment basis
in smbs name -
to pay duties and taxes
a warehouse , ,
after-sales service
to undertake ,
to seek out ,
on behalf of smb -
to distinguish (), ()
negotiation
remuneration
profit ;
to incur (, ..)
liability
invaluable assistance
to overcome ( ..)
to provide
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the sole and exclusive right
THE BRITISH COMPANY MANAGEMENT
The management of the company is called the board of Directors (not Managers) headed by the Chairman (=the President /Am/). There is usually a Managing Director and in the case of big companies there may be several Joint Managing Directors.
A Manager in British companies is the person who is head of a department Sales, Export, Works (Production), Staff, etc. So there are Sales Managers, Export Managers, Works (Production) mangers, Staff Managers, etc.
A General Manager has managers, working under control of a General Manager, and receives his instructions from the Managing Director.
By British Company Law (the Companies Acts of 1948 and 1985) a limited company (public or private) must have a company secretary whose duties are plenty. First he is the clerk to the Directors: he is to keep Register of Directors and Members, arrange for proceedings at directors and shareholders meetings, attend them and advise directors at board meetings, prepare notices for the calling of these meetings on the legal, accounting and tax implications of any proposed business move as well as write minutes and reports (the minutes of a meeting are usually concise records of resolutions or decisions reached, and the reports are more extensive and give details of desiccation, arguments for or against the resolutions, and so on). Second he represents his company and in this capacity he supervises the working of the staff and the maintenance of staff records (if there is a special staff manager), he is often finally responsible for the accounting and handling of contracts. Thus he is the link between the company and the members, between the company and the staff and between the company and the public.
The Company Secretary must be a properly Qualified Person and to be able to fulfil his routing duties well he is supposed to have training in company law, accountancy and many other subjects. He is expected to be part-lawyer, part-economist, part-administrator and part-accountant.
:
the Board of Directors
the Chairman
the managing Director -
Joint Managing Director -
a Sales Manager
an Export Manager
a Production Manager
a Staff Manager
a General Manager
the Company Secretary
private
a register ,
to work under control
shareholders
implications ,
desiccation
to supervise
to fulfil ones duties
MARKET-PLACE
The stock market. To some its a puzzle. To others, its a source profit and endless fascination. The stock market is the financial nerve centre of any country. It reflects any change in the economy. It is sensitive to interest rates, inflation and political events. In a very real sense, it has its fingers on the pulse of the entire world.
Taken in its broadest sense, the stock market is also a control centre. It is the market place where businesses and governments come to raise money so that they can continue and expand their operations. It is the market place where giant businesses and institutions come to make and change their financial commitments. The stock market is also a place of individual opportunity.
The phrase the stock market means many things. In the Northwest sense, a stock market is a place where stocks are traded - that is bought and sold. The phrase the stock market is often used to refer to the biggest and most important stock market in the world, the New York Stock Exchange, which is as well the oldest in the US. It was founded in 1792. NYSE is located at 11 Wall Street in New York City. It is also known as the Big Board and the Exchange. In the mid-1980s NYSE-listed shares made up approximately 60% of the total shares traded on organized national exchanges in the United States.
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AMEX stands for the American Stock Exchange. It has the second biggest volume of trading in the US. Located at 86 Trinity Place in downtown Manhattan, the AMEX was known until 1921 as the Curb Exchange, and it is still referred to as the Curb today. Early traders gathered near Wall Street. Nothing could stop thoseoutdoor brokers. Even in the snow and rain they put up lists of stocks for sale. The gathering place became known as the outdoor club market, hence the name the Curb. In 1921 the Curb finally moved indoors. For the most part the stocks and bonds traded on the AMEX are those of small to medium-size companies, as contrasted with the huge companies whose shares are traded on the New York Stock Exchange.
The Exchange is a non-for-profit corporation run by a board of directors. Its member firms are subject to a strict and detailed self-regulatory code. Self-regulation is a matter of self-interest for stock exchange members. It has built public confidence in the Exchange.It is also required by law. The US Securities and Exchange Commission (SEC) administers the federal securities laws and supervises all securities exchanges in the country. Whenever self-regulation doesnt do the job, the SEC is likely to step in directly. The Exchange doesnt buy, sell or own any securities nor does it set stock prices. The Exchange merely is the marketplace where the public, acting through member brokers, can buy and sell at prices set by supply and demand.
It costs money to become an Exchange member. There are about 650 memberships or seats on the NYSE, owned by large and small firms and in some cases by individuals. These seats can be bought and sold; in 1986 the price of a seat averaged around $600,000. Before you are permitted to buy a seat you must pass a test that strictly scrutinizes your knowledge of the securities industry as well as a check of experience and character.
Apart from the NYSE and the AMEX there are also regional exchanges in the US, of which the best known are the Pacific, Midwest, Boston and Philadelphia exchanges.
There is one more market-place in which the volume of common stock trading begins to approach that of the NYSE. It is trading of common stock over-the-counter or OTC that is not on any organized exchange. Most securities other than common stocks are traded over-the-counter. For example, the vast market in US Government securities is an over-the-counter market. So is the money market the market in which all sorts of short-term debt obligation are traded daily in tremendous quantities. Like-wise the market for long-and short-term borrowings by state and local governments. And the bulk of trading in corporate bonds also is accomplished over-the-counter.
While most of the common stocks traded over-the-counter are those of smaller companies, many sizable corporations continue to be found on theOTC list, including a large number of banks and insurance companies.
As there is no physical trading floor, over-the-counter trading is accomplished through vast telephone and other electronic networks that link traders as closely as if they were seated in the same room. With the help of computers, price quotations from dealers in Seattle, San Diego, Atlanta and Philadelphia can be flashed on a single screen. Dedicated telephone lines link the more active traders. Confirmations are delivered electronically rather than through the mail. Dealers thousands of miles apart who are complete strangers execute trades in the thousands or even millions of dollars based on thirty seconds of telephone conversation and the knowledge that each is a securities dealer registered with the National Association of Securities Dealers (NASD), the industry self-regulatory organization that supervises OTC trading. No matter which way market prices move subsequently, each knows that the trade will be honoured.
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stock market
money market , ( )
market place () ,
market order ( )
market value () ( )
market price , .. ,
over-the-counter market (OTC), syn. unlisted, off-board
to buy (sell) at the market ()
to size up the market
to make a market :
stock exchange
commodity exchange
labour exchange
NYSE (the Big Board, the Exchange) -
AMEX (the Curb)
exchange member, syn. registed representative (RR)
to have a membership (a seat) on an exchange ,
to trade (sell, buy) on an exchange
to run an exchange
to make commitments
to break commitments
to stick to ones commitments
to change commitments
to commit oneself to smth/doing smth . to make commitments
volume of trading , ,
unit of trading ,
odd lot , -
round lot ,
the trading floor
the trading crowd ,
trading post
to be assigned to a trading post
trading hours
to execute trade
to trade shares (stocks, bonds) on an exchange . to execute trade
non-for-profit organization
to make profits for smb -
to dispose of smth at a profit -
to fix a profit at -
to sell at a profit
to yield a profit of -
to profit by smth/doing smth -
to be profitable
to come up in price
to come down in price
to buy (sell) smth at a price () -
to set a price for -, -
to bargain for a better price ,
to accept the price -
to price stocks
to list the stock on the exchange ,
listed company (stock, securities) , ,
listing, syn. quotation , ,
quotation list
1. .., .. : .: 1991
2. .., .. .:UNVES, 1995
3. .., .. .. : ..,1993
4. Murphy Raymond English grammar in use Cambridge, 1994
5. Naylor Helen with Murphy Raymond Essensial grammar in use. Cambridge University Press. 1996
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2. - .
3.
