1. Companies finance most of their activities by way of internally generated cash flows.

2. Companies generally use an investment bank to issue their bonds.

3. Bondholders get back their original investment on a fixed maturity date.
4. Most bonds have fixed interest rates
5. Governments also issue bonds to raise money, and these are considered to be a risk-free
investment.
6. The price of bonds varies inversely with interest rates.
7. Bonds are saleable instruments that can be traded on the secondary bond market.
8. UK government bonds soared for a second day yesterday after the Bank of Englad
unveiled plans to buy billions of pounds of assets to kickstart the economy.
9. Fund managers and speculators rushed to buy government bonds.
10. The central bank will create new money to buy £75bn of assets.
11. Good news is thin on the ground for investors.
12. As it is still unclear whether we are headed for a worldwide recession or depress in.
13. So any area of investment that promises growth is going to spark more than a little
interest.
14. It means that fund managers who choose wisely can make decent money from this area.
15. Investors have an opportunity to benefit from the industry’s high rate of growth.
16. This fund invests in debt securities in various currencies issued by government ,
institutions and companies in emerging markets.
17. Emerging markets today account for one third of economic activity worldwide and three-
quarters of global growth.
18. High – yield US fund aims to achieve a high level of income.
19. The fund invests in companies whose products generate long-term economic ,
ecological and social benefits.
20. Loans are administered by established microfinance institutions on three continents.
21. Investments are made globally with no restrictions as to country , currency or sector.
22. The stock of a company is sold in units called shares.
23. The rise of hedge funds began in earnest around 2001.
24. When the share price falls they make a profit by buying them back at a cheap price.
25. GLG is one of the biggest hedge funds that has been said to be behind 5% of all the
trades in the FTSE 100.
26. Most shares were a little stronger in Madrid this morning, when the exchange reopened
after yesterday’s public holiday.
27. They wished to make an absolute return event if stock markets fell.
28. Stocks and shares are traded in various stock markets all over the world.
29. Shareholders can also make money by holding onto the shares and receiving dividend
payouts as the company prospers.
30. Some stock exchanges have automatic computerized trading systems that match up
buyers and sellers.
31. How can you make money from a falling stock market when prices are going down?
32. If you expected interest rates to fall in the near future, would be to include some bonds in
the portfolio.
33. If you buy stocks in foreign currencies there is risk of exchange rate movement.
34. A high value for alpha implies that a stock or fund has performed better than would have
been expected given its beta.
35. They wished to make an absolute return even if stock markets fell.
36. Some companies also have preferred stock or preference shares that receive a fixed
dividend.
37. I have even seen buy and sell orders in the same stock within an hour.
38. They can sell shares they don’t own by borrowing them off a conventional fund.
39. Successful companies can issue stocks or shares to raise capital to expand their
operations.
40. Many economists argue that it is impossible to regularly outperform the stock market.
41. Stock markets had been in decline for around a year after the bursting of the tech bubble.

42. If you hold some shares in another company or something, or you hold some money in a
bank account, this is very easy to value.
43. If your assets comprise research and development, or people for that matter, then it's in
principle very difficult to put a value on those things.
44. When you measure the profit of a company, what you're trying to do is measure a change
in value.
45. It's actually quite a subjective thing to measure.
46. In practice, some assets are very easy to value, and some are very difficult to value.
47. The diffirence between what a company is worth at the beginning of a year, and what it is
worth at the end of a year, is the profit that is makes, or the loss that it makes.
48. There's lots of estimation and judgement in accounting because the value of an asset
depends upon the future uncertain events, and those uncertain event, by their very nature,
can't be estimated very easily.
49. The total amount of money owed that the company will have to pay out.
50. The second-larget company in an industry can either attempt to attack the leader.
51. The official legal right to make or sell an invention for a particular number of years.
52. Many of them concentrate on maket segmentation selling profitable niche products that
are in some way differentiate from the products of larget companies.
53. A person or organization that onws a building or an area of land and rents it to other.
54. What was Google’s problem at the time the recording was made ?
55. You will hear him talking about how early stage companies can either change existing
industries or create and dominate whole new ones.
56. Why do similar shops and restaurants often do bussiness right next to each other ?
57. Clustering is perhaps the one of the most exciting areas for goverments as well as
companies to address.
58. You will hear Charles Cotton talk about countries with excenllent and inexpensive software
programers and developers.
59. What is their advantage over competitors from the other country he memtions ?
60. Why did they need to become so good at what they did ?
61. What factors do they have in common that will make them successful /
62. Charles Cotton is the former CEO of a high-tech company in California , and is currently
a director of several high-tech companies.
63. Have you bought products sold by new entrants to a market which later became big and
successful companies ?
64. A smaller competitor which does not differentiate its product is in a dangerous position.
65. Why do start-ups often situate themselves near other companies in the same industry ?
66. Each of these clusters has a number of factors associated with them.
67. It’s interesting to look at almost industry from the perspective of an early stage company.
68. Which of these factors does your country possess ?
69. Successful companies have to find ways of using their profits
70. They develop new products or services, perhaps to diversify and enter new markets
71. Acquiring a competitor in the same field of activity gives a company a larger market share
and reduces competition
72. If a company is too big to buy, it may be possible to merge with it: to combine the two
companies to form a single new one
73. Companies can also acquire businesses involved in other parts of their supply chain,
generally to achieve cost savings
74. One way to acquire part-ownership of a company is a raid, which simply involves buying
as many of a company’s stocks as possible on the stock market
75. A raid is unlikely to result in the acquisition of a controlling interest
76. If all the stockholders accept the bid, the buyer has to purchase 100% of the company’s
stocks
77. If the board of directors of a company that is subject to a bid agrees a takeover, it is a
friendly bid
78. If the company does not want to be taken over, it is a hostile bid
79. Companies are frequently encouraged to take over other companies by investment banks
80. Banks also advise companies involved in mergers and takeovers, earning high fees in the
process
81. Takeovers can lead to the formation of large conglomerates, which in turn can lead to a
contrary phenomenon.
82. Buyouts occur when financiers consider that a conglomerate resulting from a series of
takeovers has not achieved synergy but instead has become inefficient.
83. The conglomerate’s market capitalization is lower than the value of its total assets
84. Raiders can borrow money, usually by issuing bonds, and buy the companies.
85. They then either sell off the subsidiaries, or close them and sell the assets, which is known
as asset-stripping.
 86. The raiders then pay back the bonds while making a large profit.
87. Until the law was changed, raiders were also able to buy companies and take possession of
their pension funds.
88. Private equity funds are more respected today for buying companies and making them more
efficient prior to reselling them.
89. The cost of a given selection of goods and services would be the same.
90. How is the value of the money in your pocket determined?
91. Has the value of your currency increased or decreased in few week or month?.
92. A system in which the Federal Reseral could exchange gold for all the paper money.
93. Exchange rates should give purchasing power parity
94. In 1992 the bank of England lost over €3 bilion in one day trying to protect the value of
the pound sterling.
95. Only about 5% of the world’s currency transactions are related to trade-individuals.
96. If there are more buyers than sellers, its price will rise.
97. It’s very difficult of course to intervenen, to regulate exchange rates, because now they are
chaning very quickly.
98. Buying and then selling a currency would involve a tax of 1 basis point.
99. What would be the benefits of spending the money generated by the Tobin Tax in Afica?
100. A exchange rate is the price at which one currency can be for another
101. These fixed exchange rates could only be adjusted with the agreement of the International
Money Fund.
102. Governments and central banks sometimes try to change the value of their currency.
103. Exchange rate changes brought about by speculation clearly cause problems for industry.
104. This was a major reason for the establishment of the euro, the common currency in much
of Europe.
105. The CCT, on the contrary, is not designed to change foreign exchange market behavior.
106. A proposal has been made to impose a currency transaction tax (CTT) that would be
collected from dealers in international currency markets.
107. The difference between bid and ask prices at which trades would be profitable
108. It’s caculated that a CTT of 0.5 basis points on all major currencies would yield an annual
revenue of over 33 bilion dollars.
109. This little guy is perfectly capable of making a living.
110. Millions of children work in developing countries from the age of four or five, as did
millions of children in rich countries in the 19th and early 20th century.
111. If he can earn his own living, that’s a lot of money saved for me.
112. This will expose him to competition and make him a very productive person.
113. You accept that you will use inferior products from inefficient producers for the time
being.
114. Which industries or sectors could be usefully protected in your country, until they had a
comparative advantage?
115. To what extent would you be prepared to use inferior , expensive products from
inefficient producers?
116. We want to produce a wider range of goods and services.
117. Free trade and international supply chains lead to peace and stability.
118. Free trade guarantees the largest possible foreign markets for producers and exporters.
119. The price of exported goods does not reflect the environmental cost of transporting them.
120. Total world trade in 2000 was 22 times higher than in 1950, and as a result people were
much more prosperous.
121. The WTO has ruled that governments cannot take into account ‘non-commercial values’
such as human rights, opposing child labour, etc.
122. WTO policies allow rich countries to dump heavily subsidized industrially produced food
in poor countries.
123. We all know that economics is based on simplified models.
124. Governments may be concerned about workers losing jobs in certain sectors.
125. We may need to protect certain sectors of our economy to let them grow.
126. There is a very good argument in economics called the infant industry argument.
127. They cannot compete with the bigger more established industries in the advanced
countries.