I'm Rich Kleinfeldt with some financial expressions used in business and the stock market.
Our first expression is "in the red." It is another way of saying that a business is losing money. In the past ,numbers in the financial records of a company were written in red ink to show a loss.
A business magazine recently published a report about a television company. The report said the company was still in the red. but was able to cut its loss from the year before.
A profit by a business is written in black numbers. So a company that is "in the black" is making money.
Another financial expression is "run on the bank." That is what happens when many people try to withdraw all their money from a bank. A "run on the bank" usually happens when people believe there is danger a bank may fail or close.
Newspaper reports about a banking crisis in Russia used that expression. They said the government acted because of fears that the crisis would cause a run on the banks.
"Day trading" is a system that lets investors trade directly on an electronic market system. It was the first completely computerized stock market. It sells stocks of companies not listed on any stock exchange. Many high technology companies are listed on it.
Day trading companies provide a desk and a computer system to an investor who wants to trade. Individuals must provide fifty thousand dollars or more to the trading company to pay for the stocks they buy. Thousands of other investors do day trading from computers in their homes. A day trader watches stock prices carefully. When he sees a stock rise in price, he uses the computer to buy shares of the stock. If the stock continues to rise in price in the next few minutes, the day trader sells the shares quickly to make a small profit. Then he looks for another stock to buy. If a stock goes down instead of up, he sells it and accepts the loss.
The idea is to make a small profit many rimes during the day. Day traders may buy and sell stocks hundreds of times each day.
61. Which of the following statements is TRUE?
A. If a business is losing money, we can say it is "in the red."
B. In the past. numbers in the financial records of a company were written in red ink.
C. A business magazine only publishes reports about companies in the black.
D. The television company has been in the black since the year before.
62. A "run on the bank" happens when people___________.
A. try to withdraw their money from a bank
B. are afraid that the bank might close down
C. know that there might be a crisis in the government
D. think that they can't earn money enough to support their families
63. Which of the following is NOT true about Day trading?
A. Day traders can make small profits without any loss.
B. "Day trading" was the first completely computerized stock market.
C. You must give some money to the trading company to pay for the stocks you buy.
D. You can do day trading from computers in your homes.
64. How many financial expressions are explained in the passage?
A.3. B.4. C.5. D.6.
65. Rich Kleinfeldt might be a____________.
A. newspaper reporter
B. boss from a company
C. emcee(主持人) in a radio program
D. investors of a Day trading