COMPLETE THE DEFINITIONS

A bear

a person who ___________ shares, a particular currency, etc., hoping to ___________ (3 words) them
later at a ___________ price because they think prices are going to __________ rather
than___________.


A bull

a person who _________ shares, a particular currency, etc., hoping to _____________ (3 words) them
afterwards at a __________ price because they think prices are going to ________ rather than
____________ .


COURSEBOOK, p. 75; KEY NOTES

 Answer the following questions:

1. What does ROI stand for? What does te phrase mean?

2. Where does the money for a new business come from?

3. Who are business angels?

4. Who are fund managers?

5. What are ethical investments?


COURSEBOOK, p. 77; READING

Answer the following questions:

1. Do people always make rational and wise decisions about their professional future? What do they
mostly based their vital decisions on?

2. Who is Daniel Kahneman and what is he famous for?

3. Professor Kahneman advice is often sought after by many investors. T/F

4. People usually show an enormous interest in getting to know the roots of their poor decisions.
T/F

5. When investing in stocks and shares people base their decision on long-term returns of their
previous investments. T/F

6. In which other areas of life do people's expectations prove to be unrealistic?

7. Unlike in the area of personal relationships people are never guided by their first impressions
when it comes to negotiating a price with a new acquitance. T/F

8. What does bias mean?

9. What is the so called home bias?

10. How is fear of failure demonstrated in the way people value gains and losses?

11. Pople usually spend too much time making small decisions at the expense of big decisions. T/F
(support your answer by examples from the text).

12. Why is it not wise to spend too much time regretting past decisions? How can regretting past
decisions show in the behaviour of investors?

13. Why are governments likely to behave more irrationally than businesses ?