‘’ THINK SIMPLE..

THINK BIG..
DR. ASSIA DJENOUHAT
 Expert Trainer on the “African Regional Integration Index”
Consultant Trainer with “Cabinet Canadien en Stratégie et Consulting”
Dr. Assia DJENOUHAT
Marketing & Innovation Management, International Trade & E-Marketplace Researcher
Laboratory of Research on Innovation Finance and Economic; LARIEF
Associate Professor
Faculty of Economic Sciences and Management;
University of Algiers 3, Algeria
Adjunct Professor
Université Canadienne au Congo – UCAC
Institut de Management Algéro-Américain - IMAA
[email protected]
English for Finance & Banking
 1. R. C. Feenstra, A. M. Taylor, international trade, 2nd ed.,
Worth Publishers, 2010
2. T. A. Pugel, International Finance, 14th ed., Mc Graw Hill
education, 2009
3. R. J. Carbaugh, international trade, 13th ed., Cengage
Learning, 2012
4. Sarbanes-Oxley internal controls- effective auditing with
AS5, CobiT, and ITIL, R. R.
Resources Moeller, Wiley ed., 2008, canada
5. Oxford dictionary of finance and banking, 5th ed., Oxford
UP, UK
6. Business Vocabulary in Use – Advanced, Bill Mascull,
Cambridge University Press, 2020
7. Business Vocabulary in Use – Advanced, Micheal McCarthy
and Felicity O’Dell,
Core Textbook.. Cambridge University Press, 2020 –
8. Professional English in Use: Finance- Cambridge UP, 2020
9. http://www.plainenglish.co.uk

Dr. DJENOUHAT Assia

Week 2: Part 1- Finance and Banking Basics – 2
Week 2 – 3 hours

Topic 1 Topic 2 Topic 3

Stocks & Shares Describing Charts and Financial Planning

Graphs

Dr. DJENOUHAT Assia

Topic 1: Stocks and Shares
Topic Objectives and Description

A. Stocks, Shares and Equities

B. Going Public
C. Ordinary and Preference Shares
 ❑ Stocks and shares are certificates
representing part ownership of a
company.
❑ The people who own them are called
A. Stocks, Shares stockholders and shareholders.
❑ In Britain, stock is also used to refer to all
and Equities kinds of securities, including government
bonds.
❑ The word equity or equities is also used to
describe stocks and shares.
❑ The places where the stocks and shares of
listed or quoted companies are bought
and sold are called stock markets or stock
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B. Going Public
Steps to go public..

1 A successful existing 2 The company gets 3 The company gets

company wants to advice from an independent
expand, and decide to investment bank about accountants to produce
go public. how many shares to a due diligence report.
offer and at what price.

4 The company produces a 5 The company makes a 6 An investment bank

prospectus which explains its floating or IPO ( initial underwrites the stock
financial position, and gives public offering). issue.
details about the senior
managers and the financial
results from previous years.
Dr. DJENOUHAT Assia 8
 Going public key words..
Nota Bene: Flotation can also be spelt Floatation.

Go public: Financial results:

Change from a private company to a Details about sales, costs, debts,
public limited company PLC by selling profits, losses, etc.
shares to outside investors for the first
time- with a flotation
Due diligence: Flotation:
A detailed examination of a company Definitions An offer of a company’s shares to
and its financial situation investors – financial institutions
and the general public

Prospectus: Underwrite a stock issue:

A document inviting the public Guarantees to buy the shares if
to buy shares, starting the terms there are not enough other
of sale and giving information buyers
about the company
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C. Ordinary and
Preference Shares
❑ Preference shares are most often issued to
investors,
❑ while ordinary shares are often given out to startup
business founders.

Dr. DJENOUHAT Assia 10

If a company has only one type of share these are
ordinary shares.

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 ❑ Some companies also have preference shares
whose holders receive a fixed dividend (e.g.
Preference shares 5% of the shares’ nominal value) that must be
paid before holders of ordinary shares receive
a dividend.
❑ Holders of preference shares have more
chance of getting some of their capital back if
a company goes bankrupt.
❑ If the company goes to liquidation, holders of
Goes bankrupt : stops trading preference shares are repaid before other
because it is unable to pay its debts. shareholders, but after owners of bonds and
other debts.
Goes into liquidation: has to sell all its
assets to repay part of its debts.
If shareholders expect a company to grow, however,
they generally prefer ordinary shares to preference
shares, because the dividend is likely to increase
over time.

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Dr. DJENOUHAT14
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Open Discussion.. Workshop/
Homework..

❑ Have there any big

flotations in the news
recently?
❑ Are there any private
companies whose stocks
you would like to buy if they
went public? Justify

Dr. DJENOUHAT Assia 15

Topic 2: Describing Charts and Graphs
Topic Objectives and Description

A. Increase and decrease

B. Rate of change
C. High points, low points, and staying the same
A. Increase and Decrease
1. Increase..

Upward movement
Upward movement
Verbs
Nouns
• To rise • To increase
• To grow • To get better –only • A rise • An improvement –
only for positive
• To improve –only for for positive • A growth
positive situations situations situations
• An increase
• To climb

Dr. DJENOUHAT Assia 17

Increase - Examples

The basic income tax rate will rise from 25⁒ to 28⁒ .

ABC sales improved last year by 10⁒ to $1m.

The UK inflation rate has climbed to 3⁒ .

Dr. DJENOUHAT Assia

 A. Increase and Decrease
2. Decrease..

Downward movement Downward movement

Verbs Nouns
• To fall • To decrease
• To decline • To get worse –only for • A fall • A drop

• To deteriorate –only positive situations • A decline • A deterioration –only

for negative situations • To drop • A decrease for negative
situations

Dr. DJENOUHAT Assia 19

Decrease - Examples

The basic income tax rate will drop from 30⁒ to 28⁒ .

Travel agents are expecting a 4⁒ fall in prices.

CBA profits decreased from $4.5m to $4.2 m as sales continued to deteriorate.

Dr. DJENOUHAT Assia

B. Rate of change
Adjectives and adverbs can describe both the quantity and the speed of a change.

Considerable – considerably, dramatic – dramatically, sharp –

Large changes
sharply, significant – significantly, substantial - substantially

Small changes Moderate – moderately, slight – slightly

Fast changes Abrupt – abruptly, quick- quickly, rapid – rapidly, sudden - suddenly

Slow changes Slow – slowly

Regular changes gradual – gradually, Steady - steadily

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 C. High points, low points, and staying the same

To reach the highest To reach the lowest To stay at the same level To go up and down
point and then go down point and then rise on the graph or chart continuously
• To peak • To hit bottom • To remain stable • To fluctuate
• To top out • To bottom out • To stabilize
• To reach a peak • To reach a low • To remain constant
point • To level off
• To reach a maximum

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Open Discussion..
Workshop ..

❑Find a graph on the internet showing

recent changes in the sales, profits or
stock price of a company you are
interested in, and describe it using
words from this topic.

Dr. DJENOUHAT Assia 24

Topic 3: Financial Planning
Topic Objectives and Description

A. Financing new investments

B. Discounted cash flows
 Financial planning is the task of determining
how a business will afford to achieve its
strategic goals and objectives.

Usually, a company creates a Financial Plan

immediately after the vision and objectives have
been set.

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 A. Financing new investments
Text A:

Dr. DJENOUHAT Assia 28

Questions from text A- Financing new investments :

1 What’s a financial planning?

2 What’s a rate of return?

3 What’s a cost of capital?

4 Why the rate of return has to be higher than the cost of capital?

Dr. DJENOUHAT Assia

 B. Discounted cash flows
Text B:

Dr. DJENOUHAT Assia 30

Questions from text B- Discounted cash flows :

1 What’s a discounted cash flow?

2 What’s the difference between the present value and the future value?

3 What’s an inflation?

4 what’s an opportunity cost of capital?

5 What’s a time value of money?

Dr. DJENOUHAT Assia

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Open Discussion..
Homework ..

❑What return can a company get on

risk-free investments in Algeria today?
❑What is the minimum rate of return a
company would require on an
uncertain new investment?

Dr. DJENOUHAT Assia 33

 All the BEST..
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You ‘re WELCOME..