Read the following paragraph and fill in the three types of trends – primary, secondary and secular:
Market trend is an anticipated tendency of a financial market to move in a particular speed, direction and time. There are three types of these trends, 1) ______ for long time frames, 2) _____ lasting short times and 3)______ for medium time frames. The subsequent trend analysis attempts to predict future stock movement as these predictions are based on past data and development. The development of the market can be for example also influenced by supply and demand for a product, the flow of money between different nations or it can be influenced by the governmental fiscal or monetary policy.
Match the trends with their definitions:
1.Secondary market trends
2.Secular market trends
a. last for about a year or more.
b. describe trends that last from five to twenty-five years and consist of smaller sequential primary trends.
c. can be characterised as short-term changes within a primary trend. They last for only a few weeks or months.
Fill in the missing words in the definitions of the above mentioned terms:
Fiscal policy is a governmental policy for dealing with the 1)____.
Monetary policy is the policy concerning total money 2)____, exchange 3)____ and the general level of 4)____ rates.
Read about the two types of market and fill in names of the two animals:
The upward and downward markets can be described by two different animals; they are 1) b_____ and 2) b_____ market trends. Both can be used to describe the market as a whole or to describe just specific sectors of the market. The etymology of these terms is strange as the terms are likened to the animal fighting strategies. The 3) b_____ uses its paws and swipes down on its opponent whereas the 4) b_____ uses its horns to swipe up against the enemy. Consequently the upward and downward movements characterise the market as well.
The biggest group of market participants are also frequently called a herd mainly when it comes to participants in the 5) b_____ market.
Choose the best option:
The bull market describes the __ decline/increase__. A bullish trend in the stock market often begins __ before/after __ the general economy shows clear signs of recovery. Generally, the bull market is characterised with __ optimism/pessimism__, investor __ confidence/hesitation__ and expectations. During this period, the investment prices rise __ faster/slowlier__ than their historic average.
The bear market describes the __decline/increase__. It can be described as a transition from high investor __ optimism/pessimism__ to __ joy/fear__ and __ optimism/pessimism__. One of the most famous bear markets in history was the one of the __ 1930s/1960s__ known as Great Depression. During this period, prices usually hover at the same price and then __ go up/down__, indices __ rise/fall__ and volumes are stagnant. The economy __ slows down/speeds up__ and both inflation and unemployment __ rise/ fall__.
Read the final section and match the words from the text with their definitions:
During both periods, people invest. Those who invest in a rising market are called bullish investors and those who trade in falling markets are known as bearish players.
In a bull market, few people are generally willing to sell because they expect the market to grow more and this behaviour causes further growth of prices. Afterwards, investors have to compete to buy the available equity. Contrary, in a bear market, there are more sellers and fewer buyers as the investors wait for the rising tendency of the market. Consequently, a bear market is associated with weak economy.
There are two more terms connected to the secondary market trends, a market correction and a bear market rally. A market correction is characterised by a drop fluctuating between ten to twenty percent. One such example from many in the international market can be the market behaviour just before and after September 11, 2001. A bear market rally can be on the other hand described as an increase of ten to twenty per cent.
Read the following paragraph... 1) secular, 2) secondary, 3) primary
Match the trends... (1c, 2b, 3a)
Fill in the missing words... 1) budget, 2) supply, 3) rates, 4) interest
Read about the two types of market... 1) bull, 2) bear, 3) bear, 4) bull, 5) bull
Choose the best option... 1) increase, 2) before, 3) optimism, 4) confidence, 5) faster, 6) decline, 7) optimism, 8) fear, 9) pessimism, 10) 1930s, 11) down, 12) fall, 13) slows down, 14) rise
Read the final section and match... (1b, 2e, 3d, 4f, 5a, 6c)
Jazyková agentura Skřivánek
Skřivánek je největší jazykovou agenturou ve střední a východní Evropě. Na trhu jazykových služeb působí již od roku 1994. Kanceláře a učebny agentury Skřivánek najdete v 22 městech ČR a v dalších 13 zemích světa.