Read the following statements about the article and indicate whether they are true or false.

1. Dylan Wilk, who founded Gameplay at the age of 20, retired three years later after

becoming a millionaire.

2. Gameplay is the largest British retail chain specialising in computer games.

3. Over ten percent of new businesses are started by people under the age of 25.

4. Tom Hartley inherited most of his money.

5. Andrew Collins set up his company with his chemistry teacher.

6. Shell offers loans to young entrepreneurs.

7. Entrepreneurs in their early 20s are more likely to succeed than older people who go into business for themselves

8. Many banks are reluctant to provide financing to youngsters.

9. The bank accepted Gulam Kadir's loan application because his business concept was unusual for a young person.

10. Some customers like doing business with young entrepreneurs as they are more flexible.

 

Translate the text.

TEXT 25

Read the text and do the tasks follow.

THE SOUTH SEA BUBBLE

The South Sea Bubble is the name given to a speculation in 1720, and associated with the South Sea Company in London. People bought shares in the company expecting to make a huge profit, but the boom in shares collapsed and many investors lost all their money.

The South Sea Company was founded in 1711 to trade with Spanish America. The company's stock offered a guaranteed interest of 6% and sold well. Unfortunately, however, Spain allowed the company to send only one ship a year to trade in the area.

The first voyage in 1717 was a success. Then King George I became governor of the company in 1719. This created confidence in the business, and soon it was paying 100% interest.

In 1720, there was a boom in the South Sea Company's shares because it agreed to take over the country's national debt. It expected to get back its money by increased trade and a rise in the value of its shares.

The shares did, in fact, rise dramatically. The stock of the company, which had been around £128 in January 1720, reached £1,000 in August. However, by September the market had collapsed, and the price fell back to £124. Eventually, with the support of the Government, the shares levelled off at around £140.

The Sourh Sea Bubble had burst and it led to an economic depression in the country.

 

Find the words or phrases in the text which are similar in meaning to the definitions below.

1. a very large amount of money ______________.

2. set up ______________.

3. sudden increase in buying and selling ______________.

4. to accept responsibility for ______________.

5. go up very fast ______________.

6. in the end ______________.

7. remained stable ______________.

 

Answer the question.

1. What name was given to a speculation in 1720?

2. Where and when did it happen?

3. When was the South Sea Company founded?

4. What was the main activity of the company?

5. How much interest did the company pay to the shareholders?

6. Why did the shares rise dramatically in 1720?

7. What were the consequences of the boom?

 

Translate the text.

TEXT 26

Read the text and do the tasks below.

TULIPOMANIA

The first modern stock market appeared in Amsterdam at the beginning of the 17th century. In Holland in the 1630s, there was one of the first and most extraordinary speculative explosions in history. It was not in stocks and shares, in real estate or in fine paintings, as you might expect, but in tulip bulbs. It has become known by the name Tulipomania.

People from all classes invested in the bulbs. Many sold their property so that they could pay for the bulbs they had bought in the tulip market. Foreigners joined in the rush to buy the flowers and money poured into Holland from other countries.

In 1637, the boom in the market ended. No one knows why, but people began to sell. Others followed suit. Soon there was a panic among investors and the tulip market collapsed. Many people who had offered their property as security for credit went bankrupt. People who had agreed to buy tulips at inflated prices were unable to pay their debts. When sellers took legal action ro recover their money, the courts were not helpful because they saw such investment as a kind of gambling.

It is not surprising that the collapse in prices led a severe economic recession in Holland.

 

Answer the question.

1. When and where did the first modern stock market appear?

2. What did people invest their money in?

3. When did the boom in the market stop?

4. Why did many people go bankrupt?

5. Did the courts help to recover sellers’ money? Why?

6. What where the consequences?