TRANSLATION. A. Translate from English into Russian.

A. Translate from English into Russian.

Flotation

A public limited company (plc) is the only type of business organization whose shares can be traded on the stock market. The process of becoming a public limited company is commonly referred to as flotation – the shares in the company are ‘floated’ on the stock market.

When a company decides to float on the market it will appoint a financial advisor, usually a merchant bank, to help it through the process. In addition to providing advice on the administrative aspects of the flotation, the key role of the advisor will be to advise on the price at which shares are to be offered for sale. In essence, the merchant bank uses its market knowledge to assess the likely price at which the firm will be able to sell the number of shares it has to offer. Once an offer price has been decided, a glossy prospectus will be produced to aid the sale of the firm’s shares. The prospectus will include details of:

· what the firm plans to do with the money it is trying to raise

· a fully audited financial statement of the firm’s current financial position and history

· details of where the shares being offered to the market are coming from – they may be newly created shares or alternatively shares that are owned by existing shareholders

The prospectus will also include an application form, to be filled out by anyone wishing to purchase shares. Those applying will fill out the form, stating how many shares they wish to purchase and send off a check to cover the cost of those shares.

On the day of flotation, the results of the application process will be announced. The company will declare how many of the shares have been sold, with any unsold shares being purchased by the underwriter.

Each new share issue will be underwritten (guaranteed to be bought, if no one else wants it), usually by the bank offering advice to the company floating. The underwriter will charge a fee, which is often set as a percentage of the sum the company hopes to raise by floating. In return, the underwriter will guarantee to buy any shares that are unsold from the original application process.

If the issue of shares has been oversubscribed (a situation where the applications received outstrip the number of shares available), shares will be allocated in direct proportion to the number applied for. Immediately the results of the issue have been publicized, trading in shares is likely to start on the market. The original issue price will be the starting price, but this may change dramatically within minutes, particularly if the share issue was under or oversubscribed. An oversubscribed issue will mean that the price will rise quickly, whilst an undersubscribed offer will see investors looking to offload their overpriced shares in an attempt to cut their losses.

B. Translate from Russian into English.

Основными социально-экономическими формами организации предпринимательства являются: единоличное владение, партнерство и корпорация. Единоличное владение основано на собственности одного лица или его семьи. Его признаками являются: неограниченная ответственность; ограниченные возможности; максимальная гибкость и оперативность.

Партнерство базируется на собственности нескольких человек или семей. Основными признаками являются: неограниченная ответственность; ограниченные возможности; временный характер соглашения, разделения вклада, труда и доли доходов.

Корпорация представляет собой объединение собственности множества субъектов. Основной способ объединения – выпуск акций. Характерными признаками корпорации являются: широкие возможности в связи с привлечением капитала других юридических и физических лиц; длительность участия; ограниченная гибкость (действие устава).