SaraPortfolioSara Cifuentes

IndexReflective Essay

1

Bonds

2 - 8

Stocks and Shares

9 - 11

Takeovers

12 - 15

Credit Letters

19 - 33

CollectionLetters

34 - 38

In-HouseLetters

39 - 43

Partial Test

44 - 46

5 pco key:2 14/08/2014

Miss Ana Lucía Pérez

During this unit we learned many things that are

really important not only for the class but, for

working life and our daily lives.

Things as new vocabulary, help us to make our

lexicon broader and when we have to write a

letter regarding a loan, memos, minutes and

others we already know how to made one and

we do it with facility and in a more efficient and

correct way.

We are in a process of learn things that will help

us in our laboratories to win the test that opens usthe doors to the business world.

1

Marketing Portfolio

A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined

period of time at a fixed interest rate.

• Companies finance most of their activities by way of

internally generated cash flows.

• Issue new shares – selling then to their existing owners

or on the stock.

• Borrow money – usually by issuing bonds.

• For investors, bonds are generally safer tan stocks or shares,

because if an insolvent or bankrupt Company sells its assets,

bondholders are among the creditors who might get some

of their money back.

• Bonds are saleable instruments that can be traded on the

secondary bond market.

• The Price os bonds varies inversely with interest rates.

2

VocabCash Flows

The money a Company receives minus the

money it spends during a certain period

Example:

We do know that the university has admitted

that their cash flow will be affected by millions.

EquityPart ownership of a company in the form

of stocks or shares

Example:

When that new mortgage was registered,

there was clearly equity in the property.

Mutual FundsFunds operated by investment companies

that invest people’s money in various assets

Example:

We do know that the university

has admitted that their cash flow

will be affected by millions.

Pension FundsFunds that invest money that will be paid

To people after they retire from work

Example:

Some people have invested all or part of

their pension fund money in hedge funds.

3

ularyd

PrincipalThe amount of capital making up

a bond or other loan

Example:

Monthly payments to the lender go

only towards the interest, not the principal.

MaturityThe length of time for which a bond is

Issued (until is repaid)

Example:

The issue has a five-year maturity

period that expires on March 1, 2019.

CouponThe amount of interest that a bond pays

Example:

In magazines or newspapers, coupons

may be a part of an advert, as we

see in Advert 12.3.

BankruptUnable to pay debts

Example:

The company was declared bankrupt.

4

d

CreditorsPeople or institutions to whom

money is owned

Example:

Profits from the new company would be

used to pay back farmer creditors some

of the money due to them.

DividendsPayments by companies to their

shareholders

Example:

Tax exemptions on dividend payments

from pension funds have been scrapped.

Market MakersBusinesses that buy and sell securities

Example:

Each market maker competes for

customer order flow by displaying buy

and sell quotations for a guaranteed

number of shares.

BidThe price at which a buyer is prepared to

buy a security at a particular time

Example:

It will be put up for auction and a bid of

$500 has already been received.

5

d

Offer PriceThe price at which a seller is prepared to

sell a security at a particular time

Example:

There was no discount on products

if it already had the offer price.

YieldThe rate of income an investor receives

from a security

Example:

It is an important investment and should

yield results in the coming years.

6

d

SoaredRose quickly

Example:

the cost of living continued to soar.

To Kick startTo revive or stimulate something

Example:

New investment will provide the

kick-start needed to escape

from recession.

BenchmarkA standard used when comparing

Other things

Example:

A comparison group was developed to

benchmark the level of complications

without any intervention.

RallyAn improvement or increase in prices

Example:

The market staged a late rally.

7

d

DefaultingPeople or institutions to whom

money is owned

Example:

Profits from the new company would be

used to pay back farmer creditors some

of the money due to them.

Slump Recession Depression The price at which a buyer is prepared to

Buy a security at a particular time

Example:

The economy is entering its fourth recession in a decade, with no relief in sight.

To Go BustPayments by companies to their

shareholders

Example:

Tax exemptions on dividend payments

from pension funds have been scrapped.

8

• Generally shares pay a higher return than bonds.

• Successful companies can issue stocks or shares

(certificates representing part ownership of the

company) to raise capital to expand their

operations.

• Selling stocks for the first time is called an IPO or

initial public offering.

• Stock prices rise and fall depending on supply

and demand.

• Stock markets are measured by stock indexes (or

indices), which show changes in the average

prices of a selected group of important stocks.

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings.

As you acquire more stock, your ownership stake in the company becomes greater.

9

To fall a Lot

Example:

Even after the government bailout,

Citigroup is continuing to plunge, now

down to $1.95.

VocabularyTo Fall a Little

Example:

After a strong gains of last week, Asian

shares slipped on fears of a looming recession.

10

d

To Rise After a Previously

Falling

Example:

Share prices recovered in Hong Kong today,

the Hang Seng finishing up ten points.

To Rise a Little

Example:

Most shares were a little stronger in

Madrid this morning, when the exchanged

reopened after yesterday’s public holiday.

To Rise a Lot

Example:

In Milan, the S&P/MIB index plummeted,

after the unions called for a three-day

general strike next week.

11

• Horizontal integration: Acquiring a competitor in the same field of activity.

• Vertical integration: Companies can also acquire businesses involved in other parts of their

supply chain.

• Backward integration: Acquiring suppliers of raw materials or components.

• Takeover bid: A public offer to a company’s stockholders to buy their stocks at a certain price.

• Merger: Combine two companies to form a singlenew one.

• Buyout: investment transaction by which the

ownership equity of a company, or a majority

share of the stock of the company is acquired.

When an acquiring company makes a bid for a target company. If the takeover goes through, the acquiring company becomes responsible

for all of the target company’s operations, holdings and debt.

12

SubsidiariesCompanies that ate owned by a larger

parent company

Example:

Exports of joint ventures or subsidiaries of

overseas companies are also on the rise.

Pension FundsA sum of money reserved to pay a company’s

retired employees

Example:

I would like to manage my own pension fund as a

self-administered scheme and choose my own

stocks.

Vocabulary

13

d

DiversifyTo become more varied or different

Example:

Farmers these days have to diversify to

survive, and we had a good look

at the options available.

Retail OutletsPlaces where goods are sold (Shops,

stores, markets, etc.)

Example:

Walmart is one of the most largest

retail outlet of many countries.

Controlling InterestA sufficient number of stocks in a

company to be able to decide what

to do.

Example:

Together the founders own

a controlling interest .

Listed CompaniesPublic companies whose stocks are traded

on a stock exchange.

Example:

Changes in the price of shares of

listed companies.

14

d

FeesAmounts of money paid for services

Example:

Fees usually allow for overhead, wages,

costs, and markup.

ConglomeratesCompanies that own or control several

smaller businesses selling very different

products or services.

Example:

This is the largest of all of the global media

conglomerates , a brash place where

swagger and superstar brands are

a way of life.

SynergyThe combinated power or value of a

group of things working together which

is greater than the total power or value

achieved when each is working

separately.

Example:

They saw the potential of our

business synergy and introduced me to

key decision makers of the company.

Market CapitalizationThe total value of a company on the

stock exchange (the price of all its stocks)

Example:

Market capitalization is not the same

as equity value.

15

Conglomerate

16

Merger

17

CommercialPortfolio

Credit and

Collection

Letters

19

Credit involves purchasing and receiving

goods without immediate payment. Credit

transactions are common and essential in

business. There are five types of credit

correspondence:

• Application for credit

• Inquiries about credit worthiness

• Responses about credit worthiness

• Letters granting credit

• Letters refusing credit

20

AccessibleUnderstandable

AgendaSchedule

Example:

DispenseTo give out

MotionProposal

Example:

21

VerbatimeIn the same words

PertinentRelevant

PresideTo act as chairperson, to lead

ResolutionStatement of a decisión or opinión

TranspireTo take place, to happen

Cold, Icy

22

ApplicationsA typical form asks home and business addresses,

names of Banks and account numbers, a list of

other charge accounts, and perhaps, a list of

references.

• Business account applications are more

often made by letter.

• Should include credit references.

23

24

Credit Inquiries• When they determine an applicant’s credit

standing, they give the applicant a credit

rating.

• It contains all the credit information known

about the applicant, and it assures the

reference that all the information will remain

confidential.

25

26

Credit Responses• This is a way by which they can control the

information given out and, especially, limit the

information to verifiable facts:

• The amount owed and presently due

• Maximum credit allowed

• The dates of the account’s opening and

last sale

• Degree of promptness in payment

• They expect the provided information to

remain confidential.

27

28

29

Credit-GrantingLetters

• When all credit references are favorable, a

letter is sent granting credit to the customer.

• The acceptance letter:

• Notifies the customer of the credit approval

• Welcomes the customer and expresses

appreciation• Explains the credit terms and privileges

• Establishes goodwill and encourages further

sales.

30

31

Credit-RefusingLetters

• Sometimes, of course, credit must be denied.

• A letter refusing credit must give the customer a

reason (the reason may be expressed vaguely)

• Let him know that you desire and appreciate his

business.

32

33

Collection

Letters

34

The main purpose of writing this letter is to get

the money owed and maintain goodwill. It

should be firm rather than demanding. They

should be you-oriented, courteous, considerate

and concerned about the customer’s best

interest.

The first letter is the mildest and most

understanding, while the final letter in a series

threatens to turn the matter to a lawyer.

This letter should contain:

• The amount owed

• How long the bill is overdue

• Specific action the customer may take

35

Step 1• The monthly statement reminds the customer of outstanding

bills, if it is ignored, it should be followed by a second

statement. The second statement should contain a notice

stating “past due”.

• This notice should be phrased in formal.

Step 2• The collection process must gradually become more

emotional and personal.

• Should still be friendly.

Our records indicate that the balance of $_______ on your

account is now past due. Payment is requested.

36

Step 3• It still friendly, but it also now is firm.

• It inquires about the reason for the delay.

• The third collection message also makes an appeal

to the customer’s sense of:

• Fairness

• Cooperation

• Obligation

• Or desire to:

• Save her credit reputation.

• Maintain her credit line.

37

Step 4• Ultimately, payment must be demanded. Still, the fourth

collection letter allows the customer one last chance to pay

before steps are taken.

NOTE: If a customer responds to a collection letter, STOP THE

COLLECTION SERIES, even if the response is not full payment.

38

In-House

Correspondence

39

Interoffice Memorandum• Memorandums, usually called memos, are the form

commonly used for short, relatively informal messages

between members of the same organization.

• The tone of memos tends to be more informal

• The memo provides a simplified, standardized format for

communicating information concisely,

• The many uses of memos include announcements and

instructions, statements of policy and informal reports.

• Four basic subheadings are used:

• TO:

• FROM:

• DATE:

• SUBJECT:

• Are not usually signed.

• Reference initials and enclosure notation are typed below

the writer’s initials along the left margin.

• Data are often itemized and paragraphs are numbered.

40

41

Minutes• Minutes are a written record of everything that transpires at

a meeting.

• Minutes are prepared by a secretary who takes through

notes during the proceedings. Afterwards, he prepares a

draft and includes all the pertinent information.

• Include complete versions of statements and papers read

at the meeting.

• They should include the following facts:

• The name of the organization

• Place, date and time of the meeting

• Whether or not the meeting is regular

• Name of the person presiding

• Record of attendance

• Reference to the minutes of previous meetings

• Account of all reports and motions made

• Date, time and place of the next meeting

• Time of adjournment

42

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PartialTest

44

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