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Office de la Formation Professionnelle

et de la Promotion du Travail

OFPPT

The stock Exchange

As the number of firms increased, shareholders increased and so did the necessity for buying or
selling shares.

At first, these brokers did not have an office. But as activity went on growing, they found it
interesting to fix a place where shares can be traded. This office was called a stock exchange.

The first organization of this kind was the New York Stock Exchange. Other stock exchanges
include the American stock exchange in New York city, and the Midwest stock exchange in
Chicago.

Stockbrokers work in a commission house. On the trading floor of the exchange, a broker
receives orders for selling or buying shares.

Many people take risks at the stock market. They are called speculators, and are identified two
funny names. Speculators who expect that the price of a share will drop are called Bears. Bulls
are those who buy shares in expectation of a price rise.

I-Answer the following questions according to the text:

a- Why did stock exchanges develop?
b- What are their main functions?
c- What is the oldest stock exchange?
d- What is the function of a broker?
e- You are a speculator. You are selling most of your shares, because you don’t want to lose.
Are you a bull or bear?

II-Complete the following sentences

a- A broker’s job is to ……………………………………………………………………………
b- A stock exchange is the result of ………………………………………………………
c- A bull buys shares when …………………………………………………………………..
 III – FIND THE SYNONYMS OF THESE WORDS IN THE TEXT:

a) Kept on:…………………. b) Stocks :……………………..

I V- Find the antonyms of these words in the text:

a) Decrease:………………. b) Trivial:…………………………….

V- Production:
Write a paragraph talking about how stockbrokers transact shares in the Stock
Exchange.