Unit Trust(BrE) or Mutual Fund (AmE) is a company that spreads its investor’s capital over a variety of securities. Investment in a unit  trust/ mutual fund reduces the risk for small investor.

Apart from stocks and shares there are many types of investment opportunities available. When a company or government wishes to rise finance it can be issued bonds. There are securities offered at a fixed rate of interest.

Derivates or derivate instruments are financial products  such as futures, options, and swaps.  Futures are contracts that give the right to buy and sell currencies and commodities at an greeted time in the future at a price agreed at the time of the deal.

Options are contracts enabling the holder to buy a security at a fixed price for a limited period. Swaps allow the exchange of one asset for anther to suit both parties.

Exercise 1. Give for the English:

купівля товарів виробничого призначення, заробляти гроші, мета інвестування, взаємний фонд, зменшувати ризик, інвестор, залучати фінанси, випускати облігації, пропонувати цінні папери за фіксованою процентною ставкою, влаштовувати обидві сторони. 

Exercise 2. Match words from list A with words from list B that have similar meaning:

      A                                        B

objective                            obtainable

mutual fund                       possibility

reduce                               shareholder

deal                                   target 

buy                                    purchase

investor                             decrease

opportunity                       transaction 

Exercise 3. Put the necessary word in the sentences:

 bond, investors, investment (2), derivates, futures, deal, unit trust, portfolio (2), shares, mutual funds.                               

1.  … are easier to manage because a group of people do the trading for you and

     your money is spread among a variety of different investments.

2.  In an attempt to raise finance, the company issued  … to public investors,

3.  You should diversify your investment … because you have all your money іn

     one stock.

4.  Investing in a … reduces risk for small investors.

5.  The … fell through, no agreement was reached.

6.  Our … ranges from shares in food companies  to share in the fashion world.

7.  A … contract is an order  that you place in advance to buy  or sell an asset or

     commodity.

8.  More exotic financial products include … such as: options, futures and

     swaps.

9.  These oil shares were a good … .