Лекція №1

Тема лекції: «Американський долар»

План лекції

1. Introduction 2. Dollars in Circulation 3. Faces and Symbols on Dollar Bills 4. Dollar Coins 5. The history of American currency

Література: 1. Орел Ю., Артюхова І.Починаємо вивчати бізнес: Навчально-методичний посібник. – Дніпропетровськ: Видавництво ДАУБП, 2001. 2. https://www.factmonster.com/math/money/us-money-history 3. https://www.xe.com/currency/usd-us-dollar 4. https://www.uscurrency.gov/history 5. https://www.scholastic.com/teachers/articles/teaching-content/history-american- currency/ 6. http://time.com/5383055/dollar-bill-design-history/

Зміст лекції

1. Introduction The dollar is the basic unit of U.S. currency. It has been so since 1792. That year the United States began its own coinage system. Before then, the most accepted coin was the Spanish peso. Americans called it the Spanish dollar. The value of a Spanish peso was eight reales (pronounced ray-AHL-ays). To make change for an eight-reales coin, merchants would cut the coin into smaller pieces. The change might be one-half (four reales), one-quarter (two reales), or one-eighth (one real, also called one bit). This is the origin of "pieces of eight," a familiar phrase in pirate tales. Americans were used to seeing prices stated in Spanish dollars. The United States thus selected the dollar as its basic unit. Thomas Jefferson thought that dividing money by eight was impractical. As a result, Congress adopted the decimal system. In this system each dollar is divided into 100 cents.

2. Dollars in Circulation The United States Treasury Department produces U.S. currency through two branches. The Bureau of Engraving and Printing designs and prints paper bills, or notes. The U.S. Mint produces coins. The bureau and the mint ship the finished bills and coins by truck to the U.S. Federal Reserve. The Federal Reserve puts the currency into circulation. It also shreds and disposes of worn-out bills. The mint issues 1-cent, 5-cent, 10-cent, 25-cent, 50-cent, and 1-dollar coins for circulation. It has facilities in Philadelphia, Pennsylvania; Denver, Colorado; San Francisco, California; and New York City. The mint also keeps the government's holdings in silver and gold bullion (bars). Gold is kept at Fort Knox, Kentucky. Silver is kept at West Point, New York. Since the early 1970s, all U.S. bills have been Federal Reserve Notes. Before that, other types of bills were issued. They included Silver Certificates, Gold Certificates, U.S. Notes, Treasury Notes, and National Bank Notes. Today’s bills measure 6.14 by 2.61 inches (15.6 by 6.6 centimeters). Before 1929, bills were larger. Currently $1, $2, $5, $10, $20, $50, and $100 bills are used. In the past, $500, $1,000, $5,000, and $10,000 notes were also issued. The highest-value note ever issued was worth $100,000. Banks used it to transfer large sums of money. But it never circulated in public. Outmoded U.S. bills remain legal tender. That is, they are valid at face value for payment. But many outmoded bills are worth more than their face value to collectors.

3. Faces and Symbols on Dollar Bills The fronts of U.S. bills carry portraits of presidents and others who served the country. The backs display important symbols and events in U.S. history. George Washington was the first U.S. president. He is on the front of the $1 bill. On the reverse is the Great Seal of the United States. The front of the Great Seal shows a bald eagle. It has outstretched wings and a shield on its breast. The back shows an unfinished pyramid. Atop the pyramid is a symbol representing the all-seeing eye of God. Roman numerals at the base show the date the Union was begun — 1776. The front of the $2 bill shows Thomas Jefferson. He was the third U.S. president. The back of the bill depicts the signing of the Declaration of Independence in 1776. Abraham Lincoln, the 16th president, is on the front of the $5 bill. Lincoln led the United States through the Civil War (1861–65). On the back is the Lincoln Memorial, in Washington, D.C. The $10 bill features Alexander Hamilton. He was the first secretary of the treasury. The reverse shows the U.S. Treasury Building. Andrew Jackson was the seventh U.S. president. He appears on the front of the $20 bill. On the back is the White House, in Washington, D.C. The White House is the official residence of the president. Ulysses S. Grant, the 18th president, is on the front of the $50 bill. The back shows the U.S. Capitol, where Congress meets. Benjamin Franklin appears on the face of the $100 bill. Franklin was one of the country's Founders and most famous statesmen. On the back is Independence Hall, in Philadelphia. That is where the Founders signed the Declaration of Independence and drafted the U.S. Constitution.

4. Dollar Coins The United States has issued dollar coins since 1794. The first ones were made of silver. Gold dollars were first minted in 1849. The fronts of silver and gold dollars depict a female figure of Liberty. Today the U.S. Mint issues silver and gold coins for investors and collectors. They are not in general circulation. In 1971 the United States issued a circulating copper-nickel dollar. It featured President Dwight D. Eisenhower. Another copper-nickel $1 coin showed Susan B. Anthony, who campaigned for women’s rights. It was minted from 1979 to 1981 and again in 1999. In 2000 the United States issued a gold-colored $1 coin depicting Sacagawea. A Native American, she guided much of the Lewis and Clark Expedition of 1804–06. The coin has layers of copper, zinc, manganese, and nickel. In 2007 the mint began a new series of circulating $1 coins honoring U.S. presidents. It will issue four coins a year, one for each president, in the order they served. The mint also planned to issue a series of $1 coins honoring Native Americans starting in 2009.

5. The history of American currency 1. Continental Currency (1775-1790)

Vintage Value Investing

To finance the Revolutionary War, the Continental Congress issued paper money, backed by the "anticipation" of tax revenues. It was the first federally issued paper money. Without solid backing and easily counterfeited, the Continental currency notes quickly became devalued, giving rise to the phrase "not worth a Continental." Continental currency depreciated rapidly, becoming practically worthless by the end of the war.

2. Silver Coins (1792-1863)

Vintage Value Investing

Congress passed the first Coinage Act in 1792 giving the United States Mint responsibility for creating coins for public use. Silver coin is usually 90% silver with the remaining 10% of copper for strength. The law directed money to be made from copper, silver, and gold. Today, these coins (quarters and dimes) are comprised of 75% copper and 25% nickel alloy.

3. Gold Coins (1795-Present)

Vintage Value Investing In 1795, the first official gold coins were minted in the United States. When gold was discovered in California in 1948, two new denominations were struck, the gold dollar and the double eagle. Popular among collectors, modern gold coins are used primarily for investment purposes.

4. Texas Dollar (1837-1840)

Vintage Value Investing

The Republic of Texas first issued paper money in 1837. This currency was called "Star Money" for the small star on the face of the bill. The Star Money was not face value currency, but rather interest-bearing notes (similar to a Treasury Bill) that circulated by being endorsed over to the next payee. In 1838, Texas issued change notes with elaborate designs on the front and blank backs. The so-called Texas "Redbacks" were issued in 1839 with the name coming from the reddish color of the back of the bills.

5. State Bank Notes (1837-1863)

Vintage Value Investing

Issued by state-chartered, private banks, State Bank Notes became the dominant form of currency after 1836. With more than 7,000 varieties of color and design, they were easily counterfeited, causing confusion and circulation problems, No federal regulations regarding banking existed, creating what is referred to as the Free Banking Era. Because of the public's lack of trust in the banking industry, there were widespread bank failures during this time as the public removed their funds from the banks. Eventually, Congress levied a tax on State Bank Notes that decreased their value, until they were eventually phased out of circulation.

6. Confederate Currency (1861-1864)

Vintage Value Investing

During the Civil War, the Confederacy printed and issued notes from the Treasury of its newly formed government. The Confederate States of America dollar was first issued just before the outbreak of the Civil War. It was not backed by tangible assets, but simply by a promise to pay the bearer after the war. As the war began to tilt against the Confederates, confidence in the currency diminished, and inflation followed. By the end of 1864, the currency was practically worthless.

7. Fractional Currency (1862-1872)

Vintage Value Investing

Fractional currency, also referred to as "paper coins" and "shinplasters" (as the quality of the paper was so poor that with a bit of starch it could be used to make paper mache-like plasters to be used to treat wounded legs), was introduced by the United States government following the outbreak of the Civil War. These fractional notes were in use between 1862 and 1876, and issued in 3-, 5-, 10-, 15-, 25-, and 50-cent denominations. Fractional currency was used to provide change at a time when people were hoarding gold and silver.

8. Demand Notes (1861-1917)

Vintage Value Investing

To finance the Civil War, the U.S. Treasury issued paper money for the first time in the form of non-interest bearing notes, popularly called "greenbacks" due to the distinctive green ink. The U.S. government placed demand notes into circulation and used them to pay salaries and expenses incurred during the Civil War.

9. National Bank Notes 91863-1935)

Vintage Value Investing

Backed by United States bonds, these notes were issued by national banks and chartered by the United States government. State banks issued their own notes prior to the Civil War, but in 1863, the National Banking Act established a system of national banks. The new banks issued these national bank notes with federal oversight. This currency was sometimes called "hometown" notes, due to the wide range of towns and cities that issued them.

More than 7,600 banks were in existence as of January 1, 1929. National bank notes were discontinued in 1935; however, they can still be redeemed at their face value at the Department of the Treasury.

10. Gold Certificates (1865-1933)

Vintage Value Investing

First authorized by the United States government, gold certificates were first printed in 1865, backed by gold coin and bullion deposits. These were first for the exclusive use as transactions between banks. In 1882, a general-circulation gold certificate was issued. A gold certificate was a document that showed ownership of gold, without people having to store the actual gold. At a rate of $20.67 per troy ounce established by the Coinage Act of 1834, these gold certificates were used as actual currency, redeemable for goods and services. The Gold Reserve Act of 1933 required the surrender of all gold certificates, rendering them obsolete. However, it is legal to collect them today as restrictions were removed in 1964.

11. Silver Certificates (1878-1963)

Vintage Value Investing

The Coinage Act of 1873 caused standard silver dollars to stop being produced. The Treasury printed out promissory notes on paper that were legal tender redeemable in silver dollars. These were silver certificates, printed from 1878 to 1963 and were backed by silver bullion purchased by the U.S. Treasury. Redemption for silver ended on June 24, 1968, with millions of unredeemed silver certificates still in circulation.

12. Federal Reserve Bank Notes (1913-1935)

Vintage Value Investing Federal Reserve Bank Notes were first authorized by Congress in 1913 when the Federal Reserve System was established. These notes were obligations of the specific Federal Reserve Banks named on the face of the note. Issuance was discontinued in 1935. Federal Reserve Bank Notes differ from Federal Reserve Notes in that they are backed by one of the 12 Federal Reserve Banks, rather than by all collectively. They were backed in a similar way to national bank notes, using U.S. bonds, but by Federal Reserve Banks instead of chartered national banks. Federal Reserve Bank Notes are no longer issued. The only U.S. bank notes still in production are Federal Reserve Notes.

13. Federal Reserve Notes (1913-Present)

Vintage Value Investing

Federal Reserve Notes were introduced with the Federal Reserve Act of 1913 to help promoted a central banking system. Federal Reserve Notes comprise more than 99% of today's paper currency, and are currently issued in denominations of $1, $2, $5, $10, $10, $50, and $100. Before 1945, Federal Reserve Notes were also printed in denominations up to $10,000, but the larger bills were retired in 1969 due to the lack of demand. The Federal Reserve does not print currency or mint coins. It acts as a holding facility and distributor for the Bureau of Engraving & Printing and the United States Mint.

Лекція №2

Тема лекції: «Карбованець»

План лекції

1. Kyiv Rus and Hryvnia's disappearance 2. Hryvnia returns: the Ukrainian People's Republic era 3. Pavlo Skoropadskyi and the post-WWI era 4. The Soviet Era and WWII 5. Independent Ukraine and the modern era

Література: 7. Орел Ю., Артюхова І.Починаємо вивчати бізнес: Навчально-методичний посібник. – Дніпропетровськ: Видавництво ДАУБП, 2001. 8. https://blog.continentalcurrency.ca/ukraine-currency/ 9. https://ru-land.club/2018/10/19/history-of-ukrainian-money-hryvnia/ 10. https://destinations.com.ua/travel/authentic-ukraine/671-hryvnia-history-and-photos- of-the-national-currency-of-ukraine

Зміст лекції

1. Kyiv Rus and Hryvnia's disappearance In the 11th century, Hryvnia was used as a monetary unit in Kyiv Rus and was made from gold. According to the Primary Chronicle, 300 Hryvnias per year was the 'Novgorod tax' established by Oleg of Novgorod who ruled in Kyiv at the time. The monetary unit was called "Hryvnia Kun" and in different periods of time equaled a different number of coins called nogat, kun, rizan and vyveryts. As a monetary and weight unit, Hryvnia stayed the permanent way of payment for many centuries. The ‘weight Hryvnia’ changed depending on the weight of the kun coins it equaled to. The ‘monetary Hryvnia’ didn't suffer any changes and was minted in various regions. All in all, historians talk about several Hryvnia types: Kyiv, Novgorod, Chernigiv, Tatar and Lithuanian. Other coins minted by Rus princes weren’t called Hryvnia, yet possess historical importance, as they were the first governmental documents to be depicted with a Ukrainian symbol - trident. Minting national currency was founded by Volodymyr the Great. Historians link this event with Volodymyr's victory over Byzantine, adopting Christianity and the political strength of Kyiv Rus.

Zlatnyk issued by Volodymyr the Great (10-11th centuries)

Sriblianyk of Volodymyr the Great (10-11th centuries) The minted coins introduced by Volodymyr the Great corresponded the Byzantine tradition of coinage. Many countries of Western Europe copied the design of Roman coins when they were adopting the minting. Kyiv Rus coins, on the contrary, had unique portraits of princes and Old East Slavic inscriptions. The exact names of the coins weren't preserved, but in numismatics, they are commonly called "zlantyk" and "sriblianyk", deriving from gold and silver accordingly. The averse of the coin depicts the prince, who sits on the throne, a trident and the inscription - "Volodymyr on the table". The reverse side depicts Jesus Christ and the inscription "And this is his gold". The tradition of minting coins was continued by Yaroslav the Wise and Sviatopolk I of Kyiv. However, in the late 12-14th centuries, when Kyiv Rus entered the period of feudal fragmentation, minting coins was stopped. Silver ingots, which were called "Hryvnias", instead were used as money. In the 15th century, ruble minted in Novgorod ousted the Hryvnia from circulation - it remained simply a weight unit equal to approximately 200 grams. In the 17th century, Bohdan Khmelnytskyi planned to bring coins as money unit in Ukraine. During the 1648-1654 Khmelnytsky Uprising, he wanted to introduce an independent fiscal policy, considering it one of the main features of the state. However, there are no archeological artifacts to back up whether his intentions turned into life.

2. Hryvnia returns: the Ukrainian People's Republic era In 1917, the October Revolution changed the disposition of power in the former Russian Empire. The Bolshevik coup-d'état left its trace in Ukraine as well - after the military struggle for power in Kyiv, Tsentralna Rada adopted the III Universal of the Ukrainian People's Republic on November 20. The document stated the independence of the Ukrainian Republic with the capital in Kyiv as an autonomous part of the Russian state. The same document initiated creation of the new currency, which would help to strengthen the position of the new state and revive the market, shook after the October 1917 uprising in Petrograd. In December 1917 (January 1918 according to Gregorian Calendar), Tsentralna Rada adopted a law to transform the Kyiv office of the State Bank of Russia into the Ukrainian state bank. Its first director, Mykhailo Kryvetskyi, signed the first banknote of the independent Ukrainian state - 100 karbovanets. Karbovanets stayed the principal currency of Ukraine throughout the 20th century. Its name most likely derives from "karbuvaty", which means "to mint" in Ukrainian. Each Karbovanets contains 17.424 parts of pure gold. Karbovanets issued during the Ukrainian People's Republic era are often considered the most detailed and artistic currency ever adopted in Ukraine.

Averse of 100 Karbovanets (1917) designed by Heorhiy Narbut

Reverse of 100 Karbovanets (1917) designed by Heorhiy Narbut The new banknote was designed by Heorhiy Narbut, who also famously designed the Coat of arms of Ukraine. 100 Karbovanets banknote was decorated with elements and motifs of the 17-18th century Ukrainian Baroque. Exquisite fonts were used for inscriptions, including the "100 Karbovanets" that was written in four languages of the most numerous nations living on the territory of Ukraine - Ukrainian, Russian, Polish and Yiddish. Thanks to Narbut, Ukrainian Hryvnia also depicted a trident - the forgotten symbol of the oldest national currency, golden and silver coins minted by Volodymyr the Great. The 100 Karbovanets banknote was printed on regular paper without any watermarks, which caused the high circulation of counterfeit banknotes. In March 1918, Tsentralna Rada adopted the law about the new currency - Hryvnia, which equaled to ½ Karbovanets or 100 Shahs.

3. Pavlo Skoropadskyi and the post-WWI era

Averse of 2 Hryvnia banknote (1918) printed in Berlin

Reverse of 2 Hryvnia banknote (1918) printed in Berlin

Averse of 2000 Hryvnias (1918) printed in Berlin

1918 became the rocky year for Ukrainian currency. In April 1918, the authority in Ukraine was gained by Pavlo Skoropadskyi, the last Ukrainian Hetman. He preserved the denomination value of the previous government: 1 Hryvnia equaled to 1/2 Karbovanets or 100 Shahs. At the time, the market was full of every imaginable currency: Tsar Karbovanets, Ukraine People's Republic Karbovanets and Hryvnias, locally-minted Odesa Karbovanets, Deutsche Mark and Russian Empire's silver coins. The new government headed by Skoropadskyi allied with Austrian-German occupation forces that served as a guarantee of the integrity of the Ukrainian state. The new money was also necessary to continue reformation of the state. That's why Tsentralna Rada headed by Skoropadskyi ordered new banknotes from Berlin. During 1918, the banknotes of 2, 10, 100, 500, 1000 and 2000 Hryvnias were printed in Germany.

Averse of 100 Hryvnia banknote (1918) designed by Heorhiy Narbut

Reverse of 100 Hryvnia banknote (1918) designed by Heorhiy Narbut Heorhiy Narbut, who previously designed all money in Ukraine, this time decorated only the 100 banknote - it depicted a worker with a hammer and a peasant with a sickle, the recognizable Soviet symbols, on the background of wreath of flowers and fruits. Regardless of Skoropadskyi's efforts, his government couldn't eliminate what was left from the previous authorities - a huge national debt. Besides, Rada had to sustain the current public administration, so printing more money was inevitable. In the end, it led to inflation and a spike of speculation on currencies in all regions of Ukraine. In December 1918, the authorities changed once again - Skoropadskyi's regime was overthrown by the Directorate of Ukraine headed by Volodymyr Vynnychenko and Symon Petliura. The new authorities decided to bring back Hryvnia as the main Ukrainian currency. In particular, Directory planned to increase the golden content in minted coins: locals were to provide all available gold and silver for the minting of coins. All copper monuments of Russian Tsars were planned to be melted and instead made into small coins. The golden Hryvnia was planned to depict Taras Shevchenko, and the silver coins - the house of the Central Council. However, the plans weren't meant to be fulfilled - the Bolshevik invasion of 1920 lead to banning the circulation of all Ukrainian money. In total, during the 1917-1921 era, 24 types of paper money notes were introduced and used on the territory of Ukraine.

4. The Soviet Era and WWII

Image: 1 Soviet Rouble (1924) The Bolshevik invasion and the further proclamation of the Ukrainian Soviet Socialist Republic led to yet another reform of currency. Hryvnia was outcasted first by the Soviet Chervontsy, and in 1924 - the Soviet Karbovanets. The authorities implemented the new currency rate, where 1 Soviet Karbovanets equaled to 1/10 Chervonets. The Soviet Karbovanets became the official currency used in Ukraine until the breakout of the World War II. During the early years of occupation, the Nazi authorities allowed using the national currency, Karbovanets, along with Reichsmark. The official currency rate stated that 10 Karbovanets equaled 1 Reichsmark. In 1942, the Nazi occupants established the Central Emission Bank in Rivne, the capital of Reichskommissariat Ukraine. Later that year, the bank issued a new currency - Reich Karbovanets. The new currency was issued in 1, 2, 5, 10, 20, 5, 100, 200 and 500 banknotes, each bearing a watermark.

100 Reich Karbowanez (printed in Rivne, 1942)

200 Reich Karbowanez (printed in Rivne, 1942) The banknotes were printed in Berlin on high-quality paper. The averse of the banknote depicted "happy Ukrainian people", inscriptions in German and an eagle with swastika. The reverse had an inscription in German and Ukrainian: «Falsification of banknotes is punishable by prison». In 1944, after the invasion of the Red Army, occupied territories experienced a prompt currency devaluation. The Reich Karbovanets was immediately abandoned and not accepted on the liberated territories, both for trade and for exchange operations. After the WWII, the Ukrainian Soviet republic adopted the Soviet Ruble as the main currency. It's worth noting that Ruble was officially translated as 'Karbovanets'. The Ukrainian name of the currency appeared on price tags in shops in the Ukrainian Soviet Republic. In November 1990, when the Soviet Union was in the midst of its dissolution, single- usage Karbovanets were introduced as the auxiliary currency in Ukraine. Many Ukrainians still remember stamping or clipping pre-1991 single-usage coupons at the register to pay for things like shoes and clothes: Image: Pre-1991 single-use coupon- Karbovanets issued for 1 month. Citizens were supposed to stamp or clip a coupon at the register to pay for goods. The card on the image has multiple coupon-karbovanets of 1, 3 and 5 nominals.

5. Independent Ukraine and the modern era

1 Coupon-Karbovanets (1991)

500 000 Coupon-Karbovanets (1994)

In 1991, Ukraine declared itself an independent state. The issue of the new currency arose immediately and the National Bank of Ukraine issued coupons (also called "coupon- karbovanets") of multiple usage that circulated from September 1991 until 1996. The implementation of coupons meant that Ukrainians used two currencies - the Soviet Ruble and Ukrainian coupon-karbovanets. To pay for food and products of light industry like clothes and shoes, people used coupon-karbovanets. Rubles and Karbovanets were accepted as payment for services. By April 1992, all cash flow had been filled with coupon-karbovanets. Although initially it was planned that coupon-karbovanets would replace the national currency only for a couple of months, in reality, the currency circulated for several years. In 1992-1995, coupon-karbovanets experienced hyperinflation. To compare, in 1992 the average rate of Karbovanets to USD was 1 USD = 208 Karbovanets. In 1993, 1 USD equaled to 4539 and a year later – 31700 Karbovanets. The situation called for a new stable reform - in September 1996, Hryvnia was adopted as a national currency of Ukraine. The National Bank of Ukraine issued 1, 2, 5, 10, 20, 50 and 100 Hryvnia banknotes. As for the coins, Kopiika was firstly minted in Luhansk and Italy. The coins were issued in 1, 2, 5, 10, 25 and 50 nominal. The Hryvnia banknotes issued since 1992 are usually divided into four "eras" - 1992 era, 1994-2001 era, 2003-2016, and 2014-2018 era.

A modern 100 Hryvnia banknote depicting Taras Shevchenko

A modern 200 Hryvnia banknote depicting Lesia Ukrainka

A modern 500 Hryvnia banknote depicting Hryhorii Skovoroda

Despite the changes in the design, the banknotes preserved their recognizable look and personalities depicted on different nominals. For instance, 1 Hryvnia depicts Volodymyr the Great, 100 banknote is recognizable by the picture of writer Taras Shevchenko, 200 Hryvnias depict writer Lesia Ukrainka. The banknote of the highest nominal, 500 Hryvnias, depicts the philosopher Hryhorii Skovoroda on the averse and Kyiv-Mohyla Academy on the reverse. Nowadays, the design of Ukrainian national currency has watermarks for protection as well as numerous intricate elements that are interesting to explore.

Лекція №3

Тема лекції: «Баланс»

План лекції

1. An account balance 2. Credit balance 2.1. Definition of Credit Balance 2.2. Examples of Credit Balances 3. Trial balance 3.1. Definition of a Trial Balance 3.2. Examples of the Trial Balance's Use 4. Description of an account balance 5. Finding Your Account Balance in Banking 6. Balance in Accounting. The Difference Between Account Balance and Available Credit

Література:

1. Virginia Evans, Jenny Dooley, Ketan C. Patel. Career Path Express publishing. Finance. – 2010, 120 c. 2. https://www.accountingtools.com/articles/what-is-an-account-balance.html 3. https://www.accountingcoach.com/blog/what-is-a-credit-balance 4. https://www.accountingcoach.com/blog/what-is-a-trial-balance 5. https://www.investopedia.com/terms/a/accountbalance.asp

Зміст лекції

1. An account balance An account balance is the current total in an account. The concept can be applied to a number of business scenarios, including the following:  General ledger account. In accounting, the account balance is the current residual balance in an account. Under this definition, an account is the record in a system of accounting in which a business records debits and credits as evidence of accounting transactions. Thus, if the sum total of all debits in an asset account is $1,000 and the sum total of all credits in the same account is $200, then the account balance is $800. An account balance can be found for any type of account, such as a revenue, expense, asset, liability, or equity account.  Bank account. In banking, an account balance is the current cash balance in a checking, savings, or other investment-related account.  Payment due. In a business relationship, an account balance is the remaining amount owed by the payer to the payee, net of all offsetting credits. Thus, credit card payments of $50, $40, and $30, less a $10 credit, equals an account balance with a credit card company of $110. In accounting, the easiest way to find an account balance is by printing the trial balance report for the current accounting period. This report only lists the ending account balances in all accounts for which there is a non-zero balance. Account balances are frequently used in the accounting department to determine which accounts are experiencing the least activity; this is an indicator that an account can be merged into a larger and more active account that is of a similar nature. Consolidating accounts in this manner improves the efficiency of the accounting department by reducing the number of accounts that must be tracked.

2. Credit balance 2.1. Definition of Credit Balance In accounting and bookkeeping, a credit balance is the ending amount found on the right side of a general ledger account or subsidiary ledger account.

2.2. Examples of Credit Balances A credit balance is normal and expected for the following accounts:  Liability accounts such as Accounts Payable, Notes Payable, Wages Payable, Interest Payable, Income Taxes Payable, Customer Deposits, Deferred Income Taxes, etc. Hence, a credit balance in Accounts Payable indicates the amount owed to vendors. (If a liability account would have a debit balance it indicates that the company has paid more than the amount owed, has made an incorrect entry, etc.)  Equity accounts including the stockholders' equity accounts Common Stock, Paid-in Capital in Excess of Par Value, Retained Earnings, and the owner's equity account M. Smith, Capital  Revenue accounts and gain accounts such as Sales Revenues, Service Revenues, Interest Revenues, Gain on Disposal of Equipment, Gain from Lawsuit, and many others  Contra-asset accounts including Allowance for Doubtful Accounts and Accumulated Depreciation. These credit balances allow for the reporting of both the gross and net amounts for accounts receivable and for property, plant and equipment  Contra-expense accounts such as Purchases Discounts, Purchases Returns and Allowances, and Expenses Reimbursed by Employees. The credit balances in these accounts allow the company to report both the gross and net amounts.

3. Trial balance 3.1. Definition of a Trial Balance A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts. (Often the accounts with zero balances will not be listed.) The debit balance amounts are listed in a column with the heading "Debit balances" and the credit balance amounts are listed in another column with the heading "Credit balances." The total of each of these two columns should be identical.

3.2. Examples of the Trial Balance's Use The trial balance is not a financial statement. It is mainly an internal report that is/was useful in a manual accounting system. If the trial balance did not "balance" it signaled an error somewhere between the journal and the trial balance. Often the cause of the difference was a miscalculation of an account balance, posting a debit amount as a credit (or vice versa), transposing digits within an amount when posting or preparing the trial balance, etc. Today's accounting software has been written to eliminate those errors. Hence, the trial balance is less important for bookkeeping purposes since it is almost certain that the general ledger and the trial balance will have the debits equal to the credits. The trial balance continues to be useful for auditors and accountants who wish to show 1) the general ledger account balances prior to their proposed adjustments, 2) their proposed adjustments, and 3) all of the account balances after the proposed adjustments. The adjusted amounts make up the adjusted trial balance, and the adjusted amounts will be used in the organization's financial statements.

4. Description of an account balance An account balance is the amount of money in a financial repository, such as a savings or checking account, at any given moment. It can also refer to the total amount of money owed to a third party, such as a credit card company, utility company, mortgage banker or other type of lender or creditor. The account balance is always the net amount after factoring in all debits and credits. Debts can sometimes be considered negative account balances; for example, when there is an overdraft on a checking account. The following is an example of an account balance with a credit card: A person may have made various purchases of $100, $50 and $25, and returned another item costing $10. The account balance includes the purchases he made, which total $175, but also the item he returned for $10. The net of the debits and credits is $165, or $175 minus $10, and that amount is the account balance.

5. Finding Your Account Balance in Banking In banking, the account balance is the amount of money an individual has available in his checking or savings account. The account balance is the net amount available to the person after all deposits and credits have been balanced with any charges or debits. Sometimes an account balance does not reflect the most accurate representation of an individual's available money, due to pending transactions or checks that have not been processed. For example, if a starting checking account balance is $500, and the account holder received a check for $1,500, and also wrote a check or scheduled an automatic payment for $750, then his account balance might show $2,000 immediately, depending on the banking establishment. However, the true account balance is $1,250. It is important to keep track of account balances by recording every credit or debit to ensure the most accurate picture of the account.

6. Balance in Accounting. The Difference Between Account Balance and Available Credit In accounting, the account balance shows the net worth of assets and liabilities within the accounting period. Sometimes this can be referred to as an individual's or firm's net worth or total wealth because it subtracts any debts or obligations from positive sums. For credit cards, account balances are the total amount of debt owed at the start of the statement date. The account balance on a credit card also includes any debt rolled over from previous months, which can be liable for interest charges. Available credit is the term used alongside the account balance to indicate how much credit line the account holder has left to spend. For some bank accounts, deposits may not clear in whole or in part immediately, and may take up to a few business days to show up in your account. In such situations, the bank will usually indicate to you the available balance and that unavailable amount that is waiting to clear.

Лекція №4

Тема лекції: «Використання грошей»

План лекції

1. 7 Tips For Spending Money Wisely 2. Using Money to Buy Goods and Services 3. The Value of Money 4. Using Money to Make Money: Arbitrage 5. When did we start using money?

Література:

1. Virginia Evans, Jenny Dooley, Ketan C. Patel. Career Path Express publishing. Finance. – 2010, 120 c. 2. https://www.youtube.com/watch?v=x9oOWzDts5I 3. https://www.ruleoneinvesting.com/blog/financial-control/spending-money-wisely/ 4. https://saylordotorg.github.io/text_macroeconomics-theory-through-applications/s13- 02-using-money-to-buy-goods-and-s.html 5. https://www.ecnmy.org/learn/your-money/past-present-and-future/when-did-we-start- using-money/ 6. https://www.moneyadviceservice.org.uk/en/articles/debit-cards

Зміст лекції

1. 7 Tips For Spending Money Wisely For some people, financial struggles are due to not bringing in enough money. For many others, though, the problem comes from not spending money wisely or from spending more money than they make. According to Time, nearly 73% of Americans die in debt. In this article, we’ll take a look at 7 ways that you can start better spending the money you earn in order to help you reach your financial goals. 1. Track Your Finances Before you can start figuring out how to spend money more wisely, you first need to understand where your money is going. Make a budget and track both your income and your expenses. Once you know where your money is going, you can start looking for opportunities where it could be better spent. 2. Think About the Long-Term Benefits and Drawbacks of Purchases Far too many purchases are impulse decisions. While this is fine when it’s a $1 chocolate bar at the supermarket, it becomes a problem for larger purchases. Before you buy something, think about how it will affect you in the future. How long is it going to last? Is it going to put you in debt? Is the value you will get out of it over its lifetime worth the cost? These are questions you can use to determine if something is really worth buying. 3. Only Put Money on Your Credit Card if You Can Afford to Pay it off Each Month Credit cards aren’t inherently a hindrance on your finances. After all, they are convenient and many cards offer cash back on your purchases. However, you should only spend money on your credit card if you are able to fully pay it off at the end of the month. If you pay off your credit card balance each month, you won’t incur any interest charges and it will essentially be the same as paying cash. If you don’t pay off your balance each month, though, the interest accrued can quickly spiral out of control. 4. Stop Trying to Impress Other People The average person spends far too much money merely trying to maintain an image. From fancy cars to brand-name clothing, much of what we buy has more to do with impressing others than it does to do with purchasing something that we actually want and enjoy. However, “Keeping Up With the Joneses” is an expensive and unnecessary pursuit. Buy the things that you yourself enjoy and don’t fall prey to the feeling that you have to spend money in order to impress other people. 5. Figure out What Habits Drain Your Budget After you start tracking your finances, you can begin looking for habits that may be draining your budget. These habits could include expensive hobbies, eating out too much, spending too much money on clothing, or any number of other financial drains. Once you figure out which habits are eating up large portions of your income, you can then evaluate whether or not these habits are really necessary. 6. Learn to Value Savings Over Products Some people are naturally good at saving money and draw enjoyment from growing their wealth. For others, money is something that is spent the moment it reaches their hands, and anything else feels like a wasted opportunity. If you find yourself in the second camp, try to adopt a mentality that values savings over products. In the end, money invested or money saved will almost always benefit your life more than money spent on products that will wear out or become uninteresting in little time at all. 7. Start Investing Early Spending your money wisely isn’t just about avoiding unnecessary purchases – it also requires you to take the money that you save and put it towards things that will help you reach your financial goals. With that in mind, there’s no such thing as starting investing too early or investing too little. No matter how young (or old) that you are or how little money you have to invest, putting your money into quality companies that will grow in value as time goes on is always a wise use of your income.

2. Using Money to Buy Goods and Services Having defined money through its characteristics and functions, we now turn to the uses of money. By looking at what we can do with money, we can understand how intrinsically worthless pieces of paper acquire their value. Let us imagine, then, that you are lucky enough to find a $100 bill on the sidewalk. You have no way of returning it to its rightful owner. What might you do with this money? The first and most obvious answer is that you can use it to buy something you want: you can take the $100 and purchase some goods and services. 3. The Value of Money The observation that we use money to buy things tells us more about the value of money. Economists often make a distinction between real and nominal values; this distinction can be applied to money as well. First, what is the nominal value of money? This is almost a trick question: we are asking, “How many dollars is a dollar bill worth?” The answer, which does not require a doctorate in economics, is that a dollar bill is worth $1. Nominal variables—those measured in dollars or other currencies—can be converted into real variables—that is, those measured in units of real gross domestic product (real GDP). To convert a nominal variable to a real variable, we simply divide by the price level. For example, if your nominal wage is $20 per hour and the price level is $10 (meaning that a typical unit of real GDP costs this amount), then your real wage is 2 units of real GDP. If you want to review the process of correcting for inflation, you will find more details in the toolkit. Exactly the same principle can be applied to money itself. The real value of a dollar is obtained by dividing one by the price level. Thus Think of an economy in which real GDP is measured in pizzas and suppose the price level—the price of a pizza—is $10. Then the value of a dollar bill is 1/10 of a pizza. Although $1 is always worth $1, you are not guaranteed that the dollar bill in your pocket will buy the same amount of goods and services from one day to the next. If your local café increases the price of a cookie from $1.00 to $1.25, then your $1 will no longer buy you a cookie; its value, measured in cookies, has declined. If the price level increases, then the real value of money decreases. For notes and coins to be a good store of value, it must be the case that prices are not increasing too quickly.We discuss this problem in more detail in Chapter 11 "Inflations Big and Small".

4. Using Money to Make Money: Arbitrage An old joke has it that the secret to getting rich is very simple: buy at a low price and sell at a high price. So another use of your $100 would be to buy goods not to consume but to resell—a process known as arbitrage. Suppose you discovered that a particular model of digital camera could be bought much more cheaply in Minneapolis, Minnesota, than in Flagstaff, Arizona. Then you could purchase a large number of cameras in Minneapolis, load them into a suitcase, fly to Flagstaff, and sell them for a profit. If the gap in price were large enough to compensate for your time and travel costs, then this would be a money machine. By buying cameras at a low price and selling them at a high price, you could make as much profit as you wished. This situation would not persist. You, and other entrepreneurs as well, would start to bid up the price of cameras in Minneapolis. Meanwhile, the increased supply of cameras in Flagstaff would cause prices there to decrease. Before too long, your money machine would have dried up: the gap between the Flagstaff price and the Minneapolis price would no longer justify the effort. Arbitrage ensures that the prices of individual goods do not vary too much across different regions of the United States. Taken to its extreme, it would imply that the price level would be the same throughout the country. Economists call this idea the law of one price. The law of one price says that different prices for the same good or service cannot persist because arbitrage eliminates such differences. Arbitrageurs would buy the good at the low price and sell it at the high price. Demand would increase in the market where the price was low, causing that price to increase. Supply would increase in the market where the price was high, causing that price to decrease. This process would continue until the prices were equalized across the two markets. There are, of course, differences in the prices of individual goods and services in different states and different cities. These differences are primarily due to the fact that some items cannot be arbitraged. If cameras are cheaper in Minneapolis than in Flagstaff, then they can be bought and sold as we described. But if apartments in Flagstaff are cheaper than in Minneapolis, it isn’t possible to ship them across the country. Likewise services typically cannot be arbitraged. Thus we do not expect the law of one price to be literally true for every good and service. Nevertheless, the law of one price does lead us to expect that the overall price level will not differ too much in different parts of the country. It can be difficult to apply the law of one price in practice because we have to be careful about what we mean by the “same” product. An apparently identical shirt at two different retailers might not qualify as the same—perhaps one retailer allows goods to be returned, while the other does not allow returns. Identical goods are not the same if they are in different places: a Toyota on a dealership lot in Kentucky is not the same as the identical model car on a lot in Pretoria, South Africa, and so on. In such situations, the law of one price tells us that we should not expect prices of goods to be “too different,” depending on the costs of transportation and the other costs of arbitrage. We said earlier that money makes an economy more efficient because it makes transactions easier. Money makes arbitrage easier as well. Arbitrage would be a less certain way of making money in an economy with barter. First, the lack of a clear unit of account would make arbitrage opportunities less transparent. Second, the lack of a reliable medium of exchange would make arbitrage risky: the person in Flagstaff who wants to buy a digital camera from you might not have anything you want, so you might end up giving up something you own and not getting something you want in return.

5. When did we start using money? There are two big ideas of how we started using money. One: money started as a solution to problems with barter between people who had to trade. Two: money was created by governments to settle debts. Who’s right, and who cares? Take the barter idea first. A long time ago, the story goes, people would swap goods for other goods (chickens for pigs, or blankets for pots) at a generally agreed upon rate (say ten chickens for a pig, or two blankets for a large pot). But because people couldn’t always find someone else to swap exactly what they needed, people would come up with a convenient thing that was rare, durable and easy to standardize—like beads, shells or metal coins—and prices for pigs, chickens, blankets and pots would be translated into a given number of this special thing. Economists like the barter story, but some anthropologists see it differently. They say the earliest historical evidence of something similar to what we call money emerged around 5000 years ago in Mesopotamia (modern-day Iraq). The bureaucrats running the royal palace needed a unit of account to measure wages, calculate taxes or fines, and settle debts between traders and landowners. Money took the form of standardized weights of silver, whose value was determined not by the value of the metal itself, but by a government decree—not unlike the banknotes we use today. These two versions of the story of money’s origins matter, because they imply different understandings of what money is and how the economy should be managed. Can people manage things like trade on their own, or do we need the government to do really basic thingslike making money? In the barter version of events, money emerged spontaneously from transactions between individuals, without a need for government intervention. In the Mesopotamian example, money was developed by a public institution to help people settle their debts to each other.

Лекція №5

Тема лекції: «Банківські рахунки»

План лекції 1. A bank account 2. Type of bank accounts 3. Different Kinds of Checking Accounts 4. What is a Checking Account 4.1. Checking Accounts and Banks 4.2. Checking Accounts and Money Supply Measurements 4.3. Checking Accounts In Use 4.4. Checking Account Features 4.5. Checking Accounts and Your Credit Score 4.6. Checking Account: How to Open One 4.7. Checking Account: What to Do if You Are Denied One

Література:

7. Virginia Evans, Jenny Dooley, Ketan C. Patel. Career Path Express publishing. Finance. – 2010, 120 c. 8. https://en.wikipedia.org/wiki/Bank_account 9. https://www.banking.org.za/consumer-information/conventional-banking/what-is-a- bank-account 10. https://www.valuepenguin.com/banking/what-is-a-checking-account 11. https://www.investopedia.com/terms/c/checkingaccount.asp

Зміст лекції 1. A bank account A bank account is a financial account maintained by a bank for a customer. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to the financial institution and from which the customer can make withdrawals. Alternatively, accounts may be loan accounts in which case the customer owes money to the financial institution. The financial transactions which have occurred within a given period of time on a bank account are reported to the customer on a bank statement and the balance of the accounts at any point in time is the financial position of the customer with the institution. The laws of each and every country specify the manner in which accounts may be opened and operated. They may specify, for example, who may open an account, how the signatories can identify themselves, deposit and withdrawal limits and many other matters.

2. Type of bank accounts Opening your own bank account is the beginning of effective financial freedom and management. However, it is imperative to select the correct account that suits your financial needs. Banks offer different accounts, so it is advisable to speak to one of the consultants for assistance. The different types of accounts offer unique services, charges and benefits; therefore it is important to select the account tailor made for you. 1. Cheque or Current Account – A cheque or current account usually requires a minimum qualifying salary. Deposits, withdrawals, debits and transfers are permitted, and there are numerous benefits available for this account. The interest rates are usually low and there is a nominal monthly fee, and you can use your debit or cheque card to make payments and purchases. 2. CreditCard – A credit account helps you expand your financial resources. The interest rates are relatively higher and you can also use this card to make payments and purchases. There is also a qualifying minimum salary and you usually don’t pay any transactional fees. 3. Savings Account – Is a deposit account that helps you save and provides you with security at an affordable interest rate. Some banks allow saving accounts to be used as transactional accounts. The banks need to be given notice when a large withdrawal needs to be made. 4. Mzansi Account – This type of account has been created for customers who deposit or withdraw money on an irregular basis and don’t have a regular income. The bank fees, interest rates and qualifying criteria are usually low. Withdrawals and deposits can be made with your debit card and your funds can be easily accessed.

3. Different Kinds of Checking Accounts While the main features of checking accounts are fairly similar across banks, we’ve included a breakdown of the different types available on the market. Restrictions and Type Best For… Features Drawbacks

 Lots of  Requires a Customers ATMs and branches minimum balance to who want reliable available Standard waive monthly fee brick-and-mortar  Many  Overdraft service also include online and ATM fees banking

Customers  Lower  Limited/no who don't need in- fees Online access to branch person bank  Higher locations services interest rates

 Higher  Higher spending and minimum balance Business withdrawal limits requirements and fees Business owners  Tools  Fees on for tracking excess transactions and business expenses cash deposits

Customers  More  Higher Premium with a large complimentary bank minimum balance amount in deposits services requirements and fees Restrictions and Type Best For… Features Drawbacks

 Some  Interest rates interest earned on are currently very low deposits

 Age limits or  Low/no enrollment requirements Qualifying monthly fees apply Student high school and  Good  Low college students introduction to spending and withdrawal personal finance limits

 Waived  Low monthly fees availability Qualifying Senior  Free  Often seniors checks and no-fee include unimportant money orders "perks"

 Useful Customers  Low for rebuilding credit Second- with bad banking availability  Low Chance histories who can't  Usually can't opening deposit get other accounts avoid monthly fee requirements 4. What is a Checking Account A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Also called demand accounts or transactional accounts, checking accounts are very liquid and can be accessed using checks, automated teller machines and electronic debits, among other methods. A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Checking accounts can include commercial or business accounts, student accounts and joint accounts, along with many other types of accounts that offer similar features. A commercial checking account is used by businesses and is the property of the business. The business’ officers and managers have signing authority on the account as authorized by the business’ governing documents. Some banks offer a special free checking account for college students that will remain free until they graduate. A joint checking account is one where two or more people, usually marital partners, are both able to write checks on the account. In exchange for liquidity, checking accounts typically do not offer a high interest rate, but if held at a chartered banking institution, funds are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per individual depositor, per insured bank. For accounts with large balances, however, banks often provide a service to “sweep” the checking account. This involves withdrawing most of the excess cash in the account and investing it in overnight interest-bearing funds. At the beginning of the next business day, the funds are deposited back into the checking account along with the interest earned overnight. 4.1. Checking Accounts and Banks Many banking institutions offer checking accounts for minimal fees and, traditionally, most large commercial banks use checking accounts as loss leaders. A loss leader is a marketing tool in which a company offers a product or several products below market value to attract consumers. The goal of most banks is to attract consumers with free or low-cost checking accounts, and then entice them to use more profitable features such as personal loans, mortgages and certificates of deposit. However, as alternative lenders such as fintech companies offer consumers an increasing number of loans, banks may have to revisit this strategy. For example, banks may decide to increase fees on checking accounts if they cannot sell enough profitable products to cover their losses.

4.2. Checking Accounts and Money Supply Measurements Because money held in checking accounts is so liquid, aggregate balances nationwide are used in the calculation of the M1 money supply. M1 is one measure of the money supply, and it includes the sum of all transaction deposits held at depository institutions, as well as currency held by the public. M2, another measure, includes all of the funds accounted for in M1, as well as funds in savings accounts, small-denomination time deposits and retail money market mutual fund shares.

4.3. Checking Accounts In Use Consumers can set up checking accounts at bank branches or through a financial institution's website. To deposit funds, account holders can use ATMs, direct deposit and over-the-counter deposits. To access their funds, they can write checks, use ATMs or use electronic debit or credit cards connected to their accounts. Advances in electronic banking have made checking accounts more convenient to use. Customers can now pay bills via electronic transfers, thus eliminating the need for writing and mailing paper checks. They can also set up automatic payments of routine monthly expenses, and they can use smartphone apps for making deposits or transfers.

4.4. Checking Account Features There are a number of features to consider before opening a checking account. Fees: There are things banks won't widely advertise to people who aren't reading the fine print, particularly in the realm of contingent fees like overdrafts. Overdraft Protection: If you write a check or make a purchase for more than you have in your checking account, your bank may cover the difference. This line of credit offered by the bank is called overdraft protection. What many banks don't tell customers is that they'll charge you for each transaction that causes your account to use an overdraft. For example, if you have a $50 account balance and you make purchases using your debit card of $25, $25 and $53, you will be charged the — usually hefty — overdraft fee for the purchase that overdrew your account, as well as for each subsequent purchase after you're in the red. But there's more. In the example above in which you made three purchases of $25, $25 and $53, you wouldn't just be charged a fee for the last purchase. Per the account holder agreement, many banks have provisions stating that in the event of an overdraft, transactions will be grouped in the order of their size, regardless of the order in which they occurred. This means the bank would group those transactions in the order of $53, $25, $25, charging a fee for each of the three transactions on the day you overdrew your account. Furthermore, if your account remains overdrawn, your bank may also charge you daily interest on the loan. There is a practical reason for clearing larger payments before smaller payments. Many important bills and debt payments, such as car and mortgage payments, are usually in large denominations. The rationale is that it is better to have those payments cleared first. However, such fees are also an extremely lucrative income generator for banks. You can avoid overdraft fees by opting out of overdraft coverage, choosing a checking account with no overdraft fees or by keeping money in a linked account. Service Charges: While banks are traditionally thought of as generating income from the interest they charge customers to borrow money, service charges were created as a way to generate income from accounts that weren't generating enough interest revenue to cover the bank's expenses. In today's computer-driven world, it costs a bank pretty much the same amount to maintain an account with a $10 balance as it does an account with a $2,000 balance. The difference is that while the larger account is earning enough interest for the bank to earn some income, the $10 account is costing the bank more than it's bringing in. The bank makes up for this shortfall by charging fees when customers fail to maintain a minimum balance, overdraw an account or write too many checks. Even with all those fees, there may still be a way to get out. If you're a customer of a large bank (not a small-town savings-and-loan branch), the best way to avoid paying non- recurring fees is to ask politely. Customer service reps at large banks are often authorized to overturn hundreds of dollars in charges if you merely explain the situation and ask them to cancel the charge. Just be aware that these "courtesy cancellations" are usually one-time deals. Direct Deposit: Direct deposit allows your employer to electronically deposit your paycheck into your bank account. Banks also benefit from this feature, as it gives them a steady flow of income to lend to customers. Because of this, many banks will give you free checking (i.e., no minimum balance or monthly maintenance fees) if you get direct deposit for your account. Electronic Funds Transfer: With an electronic funds transfer (EFT), also known as a wire transfer, it's possible to have the money directly transferred into your account without having to wait for a check to come in the mail. Most banks no longer charge to make an EFT. ATMs: ATMs make it convenient to access cash from your checking account or savings after hours, but it's important to be aware of fees that may be associated with their use. While you're typically in the clear when you use one of your own bank's ATMs, using an ATM from another bank could result in surcharges from both the bank that owns the ATM and your bank. However, surcharge-free ATMs are becoming increasingly popular. Cashless Banking: The debit card has become a staple for anyone who uses a checking account. It provides the ease of use and portability of a major credit card without the burden of high-interest credit card bills. Many banks offer zero-liability fraud protection for debit cards to help protect against identity theft if a card is lost or stolen. Interest: If you choose an interest-bearing checking account, be prepared to pay plenty of fees — particularly if you can’t maintain a minimum balance. According to the 2018 Bankrate checking account survey, the average minimum balance required to avoid a monthly fee on an interest checking account is $6,319, down 2.56% from the year before. The most common balance required to avoid fees on non-interest checking accounts is $1,500. This minimum amount is typically the combined total of all your accounts at the bank, including checking accounts, savings accounts and certificates of deposit. If your balance falls below the required minimum, you’ll have to pay a monthly service fee, which comes out to about $15 on average. And in today’s era of low interest rates, the average yield on these accounts is only around 0.34%. The best rate, according to Bankrate, is 2.02% as of February 2019. Only a handful of banks serve up free interest-bearing checking accounts with no strings attached. However, if you have a longstanding favorable relationship with your bank, you might get the fee on your interest-bearing checking account waived.

4.5. Checking Accounts and Your Credit Score A checking account can affect your credit score and credit report under certain circumstances, but most basic checking account activities, such as making deposits and withdrawals and writing checks do not have an impact. Unlike credit cards, closing dormant checking accounts in good standing also has no impact on your credit score or credit report. And oversights that result in checking accounts being overdrawn do not appear on your credit report as long as you take care of them in a timely manner. Some banks do a soft inquiry, or pull, of your credit report to find out if you have a decent track record handling money before they offer you a checking account. Soft pulls have no impact on your credit score. If you’re opening a checking account and applying for other financial products, such as home loans and credit cards, the bank is likely to do a hard inquiry to view your credit report and credit score. Hard pulls reflect on your credit report for up to 12 months and may drop your credit score by as many as 5 points. If you apply for checking account overdraft protection, the bank is likely to pull your credit since overdraft protection is a line of credit. If you fail to restore your account to a positive balance in a timely manner following an overdraft, you can expect the incident to be reported to the credit bureaus. If you don’t have overdraft protection and you overdraw your checking account and fail to restore it to a positive balance in a timely manner, the bank may turn your account over to a collection agency. In that case, that information also will be reported to the credit bureaus.

4.6. Checking Account: How to Open One In addition to credit reporting agencies, there are agencies that keep track of and report your banking history. The official name of this report card on your bank accounts is “consumer banking report.” Banks and credit unions look at this report before they will allow you to open a new account. The two main consumer reporting agencies that track the vast majority of bank accounts in the United State are ChexSystems and Early Warning System. When you apply for a new account, these agencies report whether you have ever bounced checks, refused to pay late fees or had accounts closed due to mismanagement. Chronically bouncing checks, not paying overdraft fees, committing fraud or having an account “closed for cause” can all result in a bank or credit union denying you a new account. Under the Fair Credit Reporting Act (FCRA), if your checking account was closed due to mismanagement, that information can appear in your consumer banking report for up to seven years. However, according to the American Bankers Association, most banks will not report you if you overdraw your account, provided you take care of it within a reasonable period. If there is nothing to report, that is good. In fact, that’s the best possible outcome. It means you have been a model account-holder.

4.7. Checking Account: What to Do if You Are Denied One If you haven't been a model account-holder, you can effectively be blacklisted from opening a checking account. Your best course of action is to avoid problems before they happen. Monitor your checking account and make sure you check the balance on a regular basis to avoid overdraft charges and fees. When they occur, make sure you have sufficient funds to pay them, the sooner the better. If you are denied, ask the bank or credit union to reconsider. Sometimes the opportunity to speak with a bank officer is all it takes to get the institution to change its mind. You can also try opening a savings account to build a relationship with the financial institution. Once you are able to get a checking account, it can be tied to this savings account to provide DIY overdraft protection. Even if you have legitimate blots on your record, it’s important to know how your data is tracked and what you can do to fix a mistake or repair a bad history. Under the FCRA, you have the right to ask the bank or credit union which of the two verification systems they use. If a problem is found, you will receive a disclosure notice, likely informing you that you will not be able to open an account and why. At that time, you can request a free copy of the report that was the basis for your denial. Federal law also allows you to request a free banking history report once per year per agency, at which time you can dispute incorrect information and ask that the record be corrected. The reporting services also must tell you how to dispute inaccurate information. To order your free banking history report from ChexSystems, click here. To get your free report from Early Warning System, click here. You can and should dispute incorrect information in your consumer banking report. It may seem obvious, but you should obtain your report, check it carefully and make sure it is accurate. If it is not, follow procedures to get it corrected and notify the bank or credit union. The Consumer Financial Protection Bureau (CFPB)offers sample letters to dispute inaccurate information in your history. When you contact one of the reporting agencies, be aware that it may try to sell you other products. You are not obligated to buy them, and declining them should not affect the outcome of your dispute. You may be tempted to pay a company to “repair” your credit or checking account history. But most credit repair companies are scams. Besides, if the negative information is accurate, the reporting services are not obligated to remove it for up to seven years. The only way it can be legitimately removed is if the bank or credit union that reported the information requests it. So you might be better served trying to repair your relationship with the institution on your own. Some banks offer cash-only pre-paid card accounts for people who can't get traditional accounts. After a period of good stewardship, you may qualify for a regular account. Many banks and credit unions offer other types of second-chance programs with restricted account access, higher bank fees and, in many cases, no debit card. If you are a candidate for a second-chance program, make sure the bank is insured by the FDIC. If it’s a credit union, it should be insured by the National Credit Union Administration (NCUA).

Лекція №6

Тема лекції: «Банківські послуги та витрати»

План лекції 1. Related content 2. Overdraft Fees 3. Monthly Maintenance Fees 4. Paper Statement Fees 5. Account Closure Fees 6. Inactivity or Escheat Fees 7. Card Replacement Fees 8. Returned Item Fees

Література:

12. Virginia Evans, Jenny Dooley, Ketan C. Patel. Career Path Express publishing. Finance. – 2010, 120 c. 13. https://money.usnews.com/banking/articles/pesky-bank-fees-and-how-to-avoid-them 14. https://en.wikipedia.org/wiki/Bank_charge 15. https://www.bcg.com/publications/2018/four-ways-banks-can-radically-reduce- costs.aspx

Зміст лекції 1. Related content Bank fees get a bad rap. They are pricey, pesky and often designed to catch you off guard when you can least afford them. Checking and savings account fees can add to the cost of closing a bank account or force a low account balance into the negatives. So what bank fees should you be looking out for? And how can you avoid them if your bank levies these fees? Here are seven annoying bank fees and how to avoid them.

2. Overdraft Fees Banks levy this fee when consumers withdraw more from an account than is available. For example, a $150 transaction on an account that holds just $100 may trigger an overdraft charge. "It's a regressive fee," says Peter Smith, senior researcher for the Center for Responsible Lending. "It charges more money to people who can less afford it." An overdraft fee typically costs around $35, but the total price of overdrawing an account can increase if it takes the banking customer multiple days to restock their account. For example, if a PNC Virtual Wallet account is overdrawn for more than five days, PNC customers pay a daily additional $7 fee (up to $98) on top of the $36 overdraft fee. How to avoid it: The good news is that banks are required to ask customers to opt in to the overdraft service when they sign up for a new account. Savvy consumers will opt out. "Not opting in to this service is the best way to make sure you're not penalized for having a lower balance than you thought," Smith says. Without this service, overdrawn transactions may be declined, but the brief embarrassment may be preferable to a pricey fee. Keep in mind that not opting for this fee may only protect you if you overdraw on ATMs or during one-time debit card transactions, says Simon Zhen, research analyst at MyBankTracker.com. If you overdraw through a recurring bill payment, you may still get hit with the charge. To avoid the fee in these situations, consider signing up for overdraft protection via automatic transfers from your savings to your checking account when your balance is low. You may pay a transfer fee, but it could be about $12 or $13, still less than the overdraft fee, Zhen says. A line of credit or linked credit card may also cover over-withdrawals with a smaller fee or cheaper interest charge. Also make sure to set up low-balance alerts on your phone or banking apps that let you know when your account is nearing zero.

3. Monthly Maintenance Fees Banks typically charge these to maintain your account. For example, Bank of America charges a $12 per statement cycle maintenance fee on its Advantage Plus banking account. Chase Bank charges a $12 monthly service fee on its Total Checking account. How to avoid it: These fees are typically avoidable if you meet certain terms, such as carrying a large balance or automatically depositing a check each month. When shopping for a bank account, consider whether you can meet these requirements to avoid the fee. Don't forget to consider online banks, which levy this upcharge less frequently.

4. Paper Statement Fees The idea of paying extra to view a paper statement may have seemed strange 10 or 15 years ago, but today this charge is increasingly common. Expect to pay $2 to $3 to receive a paper bank statement, Zhen says. How to avoid it: The best way to dodge this fee is to get on board with receiving your bank statements online. If you'd still like a print copy, consider printing on a home printer for a lower-cost alternative. Not receiving a paper statement in the mail should have the added benefit of reducing the chances fraudsters can steal your personal information by raiding your mailbox or recycling bin.

5. Account Closure Fees This fee shouldn't be an issue if you're loyal to your bank. But if you're closing a bank account quickly, typically within 90 to 180 days of opening it, you may get hit with this fee of around $25. The fee is designed to discourage people who are signing up for bank accounts solely to take advantage of new-customer bonuses, Zhen says. How to avoid it: Keep your account open beyond the cutoff to dodge this charge. How to Avoid Online Savings Account Fees Online savings accounts can earn investors more interest than the many brick-and- mortar bank accounts.

6. Inactivity or Escheat Fees This fee may be charged if you don't interact with your bank account for a certain amount of time, typically one to two years. The bank may take an escheat fee of about $50 before transferring those assets to the state treasury. How to avoid it: Keep your accounts live by logging in regularly, writing checks or paying for transactions from your bank account. Open any mail from your bank. It may be trying to alert you to the fact that your accounts are inactive.

7. Card Replacement Fees Your bank may charge you if you ask to replace a debit card before it's expired. For example, at Bank of America, some customers pay $5 for a nonexpired ATM or debit card. They'll pay an extra $15 if they need rush delivery. At PNC, consumers may pay $7.50 for each replacement card and $25 for expedited shipping. How to avoid it: If you lose or have a card stolen, there's not much you can do to dodge the replacement fee. But keep a backup debit or credit card on hand so that you save on shipping.

8. Returned Item Fees Like an overdraft fee, a returned item charge occurs when your bank doesn't have sufficient funds to support a transaction, typically a check, and has to "return the item." Expect to pay around $35 for each returned item fee. How to avoid it: Keep careful tabs on your checking balance to avoid over- withdrawal. Set up low-balance alerts on your mobile banking app. The bottom line: Keep an eye on these fees when switching banks, experts say. Says Smith, "People should, as much as they can, look past the branding and marketing of the institution and look at the real-deal factors that affect them."

Лекція №7

Тема лекції: «Кредити»

План лекції

1. What Is Credit and what Is a Credit Report? 2. What Are Credit Bureaus? 3. What Is Credit Scoring? 4. What Is Credit Used For? 5. How Is Credit Useful for Consumers? 6. What about credit scores? 7. Types of Credit 8. Key Takeaways 9. Credits on Accounting Statements 10. When not to use a line of credit 11. When to use a line of credit

Література:

16. Virginia Evans, Jenny Dooley, Ketan C. Patel. Career Path Express publishing. Finance. – 2010, 120 c. 17. https://www.thebalance.com/what-is-credit-315391 18. https://www.investopedia.com/terms/c/credit.asp 19. https://www.consumer.gov/articles/1010-using-credit 20. https://www.creditkarma.com/advice/i/what-is-line-of-credit/ 21. https://en.wikipedia.org/wiki/Credit

Зміст лекції

1. What Is Credit and what Is a Credit Report? Credit refers to borrowing: your ability to borrow and the amount you borrow. When it comes to loans (like credit cards, auto loans, and home loans), your credit is your reputation as a borrower. It tells lenders how likely you are to repay your loans, which helps them decide whether or not to approve your loan request and how much to charge. Your credit is made up from information about your borrowing history. Most of the information comes from your credit reports. Credit reports are a collection of information, including:  Loans that you’ve used in the past, even if you’ve paid them off (generally the past seven years, although there are exceptions)  Loans that you’re currently using (including any unused lines of credit)  How much you’ve borrowed  Your required minimum monthly payments  Your payment history—have you made late payments, or are you always on time?  Public records such as bankruptcy and foreclosure  Any loans that you have defaulted on and are in collections Your credit report is the master document that's behind your "credit." Based on that information, lenders decide whether or not to offer you a loan. However, most lenders don’t actually look at your credit report. Instead, a computer program goes through the information and creates a credit score (see below). A high score means you’re more likely to get approved for a loan at attractive rates. When somebody wants to see your credit report or get your credit score, they request it from a credit bureau (also known as credit reporting agencies). Under federal law, you are also allowed to view your credit reports for free at least once per year. See how to request your reports.

2. What Are Credit Bureaus? Credit reporting agencies collect all of the information that appears in your credit report. They are information warehouses, but they might not keep as much data as you think. For example, your annual income is not part of your basic credit reports.

Again, they get that information from lenders you've worked with, public records databases, and other sources. They distribute or sell that information when you apply for a loan, or when anybody requests a credit report (such as an employer or landlord—who needs your permission before a report can be released). There are numerous credit bureaus, but the "big three" have the greatest impact on what is most often referred to as your "credit." It's essential that the information in each credit bureau is accurate—if there are errors in your credit reports, they need to be fixed or you'll be rejected for loans (and it could cause problems in other areas such as job applications or auto insurance pricing).

3. What Is Credit Scoring? Credit bureaus have a ton of information. There are hundreds or thousands of lines of information about you in their databases, and it’s difficult for lenders to sort through all of it. There are not enough hours in the day for an employee at a bank, credit union, or online lender to read through every loan applicant’s credit reports manually. As a result, most lenders use credit scores instead of reading credit reports. Credit scores are numbers generated by a computer program that reads through your credit reports. It looks for patterns, characteristics, and red flags in your history. Based on what the program finds, it spits out a credit score. Scores are easy for lenders to interpret— they might just set rules based on the level of your score. For example, credit scores above 720 might get approved automatically, loans between 650 and 720 get a higher interest rate, and other loans are not approved. While federal law gives you free credit reports, it does not provide for free credit scores. However, you can buy credit scores from credit bureaus, and there are several ways to see your score for free. Note that there are numerous credit scores out there— learn how they work and which ones are most important.

4. What Is Credit Used For? Credit was originally used for lending decisions, but credit scores and reports show up in other areas of your life as well. Consumers and lawmakers constantly watch what credit is used for, and debate about the fairness of credit scoring and the expanding use of those scores. Borrowing money: this is the most common use of credit scores. Potential lenders want to know if you’re likely to repay your loans on time. Since they don’t know you personally, they try to make a prediction based on your previous loan experiences. A loan offered with no credit check is generally expensive. Insurance coverage: insurers check your credit to determine whether or not to cover you, and at what rates. They use insurance scores that are slightly different from standard lending scores. Employment: some employers check your credit, although you need to give them permission to do so. Presumably, they’re trying to make a judgment about how responsible you are based on your financial history. In some jobs, the link makes sense (they want to avoid situations where you might be tempted by bribes) while in other jobs the link is less clear. Utilities: to get services such as electricity or water, you might need to get a credit check. If that’s not possible (because you have not yet built up your credit) or you have bad credit, service providers often demand a larger security deposit. Renting: similar to utility companies, your next landlord might ask to pull your credit. Depending on the rental market, your credit could prevent you from renting or lead to a higher deposit. There is a lot of confusion around what is credit-related information. The most important information used in a credit decision is information from your credit reports and details that you include in an application. For example, your income is not included in your credit report or score, but lenders need to know whether or not you can afford to repay (by calculating a debt to income ratio, for example)—so they ask about income on the application.

5. How Is Credit Useful for Consumers? Credit can be helpful or harmful to consumers. To see the pros and cons, go back to the broader definition of credit: the ability to borrow. Borrowing makes it possible to buy expensive things. If you wanted to buy a house, you might need to set aside hundreds of thousands of dollars in a savings account, and that’s not feasible for most people. A mortgage loan makes it possible to own a home, control your living environment, and build equity in the home (if you’re lucky, the home’s value will increase as well). Auto loans make it possible to get a safe and reliable means of transportation. Student loans make it possible to afford higher education, which often leads to higher lifetime earnings and a better standard of living. With credit, consumers can pay for expensive things with small payments. Unfortunately, temptation (and sometimes just bad luck) can cause problems. Once you borrow, you need to repay. If you can’t afford the payments for whatever reason, your credit will suffer and you’ll face high expenses (late fees, legal costs, and so on). Tempting "0% interest" offers can end up being surprisingly expensive. Even if you always pay on time, credit can be a parasite on your finances. For example, payday loans are extremely expensive loans that often last for months or years. Paying only the minimum on your credit card also results in a long-term relationship with debt. It almost always costs money to borrow, and some people choose to live without debt and credit to avoid the costs and risks.

6. What about credit scores? Those are probably helpful for consumers as a whole, but they are a problem if you’ve got bad credit. Credit scoring makes it less expensive to borrow because lenders can more or less automate lending decisions. What’s more, lenders don’t discriminate based on race or other characteristics of borrowers (credit scores are supposed to eliminate any discrimination), so lending is fairer. Finally, lenders can reduce their losses by avoiding borrowers that are more likely to default, which keeps costs down for other borrowers. The flip side, of course, is that if you have bad credit, you’ll have a hard time getting a loan. Fortunately, it is possible to build credit and rebuild it after you’ve fallen on hard times—and improvements can come within a few years.

7. Types of Credit There are many different forms of credit. The most popular form is bank or financial credit. This includes car loans, mortgages, signature loans, and lines of credit. Essentially, when the bank lends to a consumer, it credits money to the borrower who must pay it back at a future date. For example, when someone makes uses his VISA card to make a purchase, the card is considered a form of credit because he is buying goods with the understanding he will pay the bank back later. Financial resources are not the only form of credit that may be offered. There may be an exchange of goods and services in exchange for a deferred payment. When suppliers give products or services to an individual but don't require payment until later, that is a form of credit. So when a restaurant receives a truckload of food from a vendor who doesn't demand payment until a month later, the vendor is offering the restaurant a form of credit.

8. Key Takeaways  Credit is generally defined as an agreement between a lender and a borrower, who promises to repay the lender at a later date—generally with interest.  Credit also refers to an individual or business' creditworthiness or credit history.  In accounting, a credit may either decreases assets or increases liabilities and equity on a company's balance sheet.

9. Credits on Accounting Statements In accounting, a credit is an entry recording a sum that has been received. Traditionally, credits appear on the right-hand side of the column with debits on the left. For example, if someone is tracking his spending in a checking account register, he records deposits as credits and he records money spent or withdrawn from the account as debits. Additionally, if a company buys something on credit, its accounts must record the transaction several places in its balance sheet. To explain, imagine a company buys merchandise on credit. After the purchase, the company's inventory account increases by the amount of the purchase, adding an asset to the company. However, its accounts payable field also increases by the amount of the purchase, adding a liability to the company. 10. When not to use a line of credit  If you know you can’t afford payments or your income is unstable, a line of credit might not be a good choice. If you default on payments, your credit will most likely suffer. What’s more, on a secured line of credit, the lender may take possession of the collateral.  If you know exactly how much you need and you don’t want to use collateral, you may be able to find an unsecured personal loan with better rates than an unsecured line of credit, depending on your creditworthiness.  If you’re using the line of credit for basic needs, or to fund short-term expenses like dining out and vacations, that could be a red flag that you’re struggling financially and shouldn’t take out new debt.

11. When to use a line of credit  If you need the money for a home-improvement project, education costs or other types of major expenses, a HELOC or secured line of credit may be a good idea — as long as you know you’ll have the money for repayment. Bonus: The interest you pay on the HELOC may be tax-deductible.  An unsecured personal line of credit may help you consolidate several small debts you’re paying off into one payment with a lower APR, while avoiding using collateral (depending on the terms of each line of credit and your creditworthiness).

Лекція №8

Тема лекції: «Банки Англії, України»

План лекції 1. Introduction. Banks in the UK 1.2. The Big Five: Top UK Banks 2. How to Open a Bank Account in the UK 3. Overview of Banks in the UK 4. The top banks in the UK are 5. Banks of Ukraine Література:

22. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 23. https://www.bankofengland.co.uk/ 24. https://www.internations.org/great-britain-expats/guide/29457-economy- finance/banks-in-the-uk-16147 25. https://corporatefinanceinstitute.com/resources/careers/companies/top-banks-in-the- uk/ 26. https://destinations.com.ua/business/money/525-top-10-ukrainian-banks 27. https://www.worldatlas.com/articles/the-largest-banks-in-ukraine.html 28. https://www.contactukraine.com/banking/major-banks-in-ukraine

Зміст лекції

1. Introduction. Banks in the UK There are lots of different banks in the UK offering lots of different services. Yet, opening an account in the UK can be challenging for expats. We provide you with an overview of the most popular banks, the services they offer, as well as tips on how to open a bank account.  The UK banking system consists of different branches for personal and business purposes alike.  To open a bank account in the UK, you need proof of identity and proof of address. The latter is quite difficult to show for newly arrived expats. However, there are several documents that count as proof of address.  There are many different ways to transfer money to the UK, such as FX companies or transfer services of your bank. Banks in the UK specialize in different services for both personal and business purposes. Thus, not all banks may suit your needs. The different branches of the British banking system include:  High Street Banks that offer services to the general public.  Business Banking services that are offered by high street banks in addition to ordinary accounts. They often include additional services and fees.  Investment Banking services that are usually offered by financial institutions on behalf of high street banks, investment trusts, and pension funds. They invest money in stock and bond markets.  Central Banks which are setting the Monetary Policy of the country in some cases, and ensure sufficient liquidity or act as a lender. The central bank in the UK is the Bank of England. The banking system is supposed to support the economy of the country and ensure a certain amount of stability. Despite the financial crisis in recent years, over one million people are employed in financial services. Banks and their financial and related professional services contribute 11.8% of the national GDP.

1.2. The Big Five: Top UK Banks Although there are a lot of big and small banks offering all kinds of financial services, some of them are more popular than others. The top banks in the UK are:  HSBC  Royal Bank of Scotland  Lloyds Banking Group  Barclays  NatWest This does not mean, of course, that one of these is necessarily the best choice for you. Other banks include Santander, Halifax, Standard Chartered, and Tesco Bank. They may very well offer services and deals which are more suited to your needs. Before opening a bank account, it makes sense to “shop around” and ask your friends which banks they recommend.

2. How to Open a Bank Account in the UK While opening a bank account in the UK used to be a rather complicated endeavor, banks have started to simplify the process for expats. The most convenient way to do it is by opening a bank account before your move. Your bank at home might be able to set up an account for you, if it has the correspondent banking relationship with a British one. Many banks also offer international accounts which are especially designed for non-residents. Please note that you might be asked to make a big initial deposit or pay a monthly fee for the latter. However, if you prefer to take care of it after your arrival, you should make sure to come prepared. Once you have chosen a bank for yourself, you should make sure to make an appointment with the staff there. Find out ahead of time which forms and which types of identification you may need. It will save you a lot of time if you have the right forms with you and don’t have to go back again with the correct paperwork. Keep in mind that some banks may require you to deposit a start-up amount on your new account.

3. Overview of Banks in the UK There are more than 45 building societies and 300 banks in the UK, making it the biggest banking system in Europe and the fourth largest in the world. The different branches of the UK banking system include:  High Street banks that offer services to the general public.  Business banking services that are provided by High Street banks in the UK in addition to ordinary accounts. They often include additional services and fees.  Investment banking services that are usually offered by financial institutions on behalf of High Street banks, investment trusts, and pension funds. They invest money in stock and bond markets. According to Moody’s, the outlook for banks in the UK is negative, due to uncertainties brought about by the post-Brexit vote. For anyone considering a career in banking in the UK, this list of the top banks in the UK is a helpful guide on where to start. To learn more, see all our lists of financial institutions. 4. The top banks in the UK are: HSBC Holdings HSBC was founded in 1880 and is headquartered in London. The bank employs around 85,000 individuals (including subsidiaries). It operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. As of December 31, 2016, it managed 964 branches of banks in the UK and another 13 branches in the Isle of Man and the Channel Islands. In 2016, HSBC reported total assets of US$2.3 billion and posted a net income of US$7.1 million. Barclay’s PLC Barclay’s PLC was established in 1925 and is headquartered in London. The bank provides retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. It employs around 119,300 staff. As of 2016, total assets of the Barclay’s Group amounted to US$99 billion and net income reached US$2 billion. The net income of Barclay’s UK was US$9 billion. Royal Bank of Scotland Royal Bank of Scotland was founded in 1880 and is headquartered in Edinburgh. The bank employs around 77,000 individuals. It operates as one of the banks in the UK through Personal and Business Banking, Ulster Bank RoI, Commercial Banking, Private Banking, RBS International, NatWest Markets, Capital Resolution, Williams & Glyn, and Central Items and Other segments. As of 2016, the bank’s total assets were US$1 trillion and total income was US$17 million. Lloyds Banking Group Lloyds Banking Group was created in 1695 and is headquartered in London. The bank employs around 70,000 individuals. It provides banking and financial services under the Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows brands to individual and business customers in the UK and abroad. It is one of the oldest operating banks in the UK. In 2016, the bank reported total assets of US$1 trillion and posted a net income of US$2.8 billion Standard Chartered PLC Standard Chartered PLC was founded in 1969 and is headquartered in London. The bank employs around 86,000 staff. It operates through Corporate and Institutional Banking, Retail Banking, Commercial Banking, and Private Banking segments. As of 2016, it operated 964 branches in the United Kingdom and 13 branches in the Isle of Man and the Channel Islands. Last year, the bank’s total assets amounted to US$647 billion and total income reached US$540 million. Santander UK Santander Bank was established in 1988 and is headquartered in London. The bank employs around 19,500 individuals. It operates through Retail Banking, Commercial Banking, and Global Corporate Banking segments. It manages a network of 841 branches and 67 corporate business centers, and also operates through ATMs, telephony, digital, mobile, Internet, and intermediary channels. As of 2016, the total assets of the bank were US$400 billion and net income was US$1 billion. Nationwide Building Society Nationwide Building Society was founded in 1884 and is headquartered in Swindon. The bank employs around 18,000 staff. It operates through its Retail and Commercial segments. It provides current and savings accounts, ISA accounts, residential mortgages, commercial real estate loans, project finance, social housing, personal and car loans, and home improvement loans, as well as loans to housing associations. It also offers protection and investment products, financial planning services, credit cards, current account overdrafts, and treasury, liquidity, and discretionary services. In 2016, the bank reported total assets of US$276 billion and posted a net income of US$1.3 billion. Schroders Schroders was created in 1804 and is headquartered in London. The bank employs around 4,000 individuals. It operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. It manages 41 offices in 27 countries in Europe, America, Asia, Africa, and the Middle East. As of 2016, the bank’s total assets amounted to US$28 billion and net income reached US$676 million Close Brothers Close Brothers was established in 1920 and is headquartered in London. The bank employs around 2,000 staff. It operates through its Retail, Commercial, and Property divisions. The Retail division provides intermediate financing, principally to individuals, through motor dealers, insurance brokers, and retailers. The Commercial division offers secured lending to the SME market. The Property division provides residential development financing to professional developers. As of 2016, the total assets of the bank were US$11.5 billion and net income was US$245 million. Coventry Building Society Coventry Building Society was founded in 1884 and is headquartered in London. The bank employs around 2,000 individuals. The bank provides building and financial services. It offers a wide range of products and services, including financial planning services, mortgages, investment services, savings products, brokerage services, as well as insurance products such as travel insurance. In 2016, the bank reported total assets of US$51 billion and posted a net income was US$240 million.

6. Banks of Ukraine In 2014-2015, the Ukrainian financing system has been reformed due to the numerous banks going bankrupt. Three years later, the country's banking system stabilized, bringing in ₴8 billion of net income. Destinations made a list of the best banks in Ukraine based on the financial ratings by minfin.com.ua and finance.ua.

Raiffeisen Bank Raiffeisen Bank in Ukraine was formed in 2005 when the Raiffeisen group acquired Ukrainian Bank Aval. The rebranding was the initial boost that helped the bank in gaining clients, resulting in 2.5 million customers by the end of 2017. The bank has numerous Ukrainian and international awards, including being chosen the 'Best Bank in Ukraine' in 2017 by Global Finance. This year, Raiffeisen won the FinAwards'18 in the nomination 'The Most Stable Bank in Ukraine'. According to the data provided by minfin.ua, the bank shows a stable performance for 4 consecutive quarters. The RBI Group holds 68.28% of Raiffeisen Bank Aval’s authorized capital. As of the end of 2017, the European Bank for Reconstruction and Development owned the remaining 30% of the bank's authorized capital. Raiffeisen Bank Aval provides services for private individuals as well as corporate clients. According to the National Bank of Ukraine interest rate ranking, Raiffeisen holds the 5th position among the 169 banks in the country. UkrSibbank UkrSibbank is one of the oldest Ukrainian banks that entered the market in 1990. In 2006, one of the largest financial groups in the world, BNP Paribas, became the bank's shareholder. Nowadays 60% of UkrSibbank's shares belong to BNP Paribas, and the remaining 40% is owned by the European Bank for Reconstruction and Development. UkrSibbank provides services for private individuals and businesses, boasting more than 2 million private clients, more than 169 thousand SMBs as well as 2.3 thousand large corporations. The bank currently has about 300 branches in Ukraine. Like many European banks, UkrSibbank traditionally offers online banking and flexible deposits. Besides, the bank is a member of Mastercard, Visa, SWIFT, and Global ATM Alliance. According to the National Bank of Ukraine interest rate ranking, UkrSibbank holds the 8th position among the 169 banks in the country.

Crédit Agricole According to the National Bank of Ukraine rating, nowadays Crédit Agricole is one of the biggest Ukrainian banks. Moreover, it is also the oldest foreign bank of the country, established way back in 1993. As the name suggests, the bank belongs to the French Crédit Agricole Group. Crédit Agricole in Ukraine caters for more than 300 thousand private individuals and about 18 thousand corporate clients, most of which are SMBs). The outstanding feature of this bank is the cooperation with more than 400 car showrooms, which isn't surprising given that Crédit Agricole is the only bank in Ukraine certified with ISO 9001 in car loans. The bank is the agent of MoneyGram, member of Visa International, Mastercard International, American Chamber of Commerce in Ukraine and the European Business Association. According to the National Bank of Ukraine interest rate ranking, Crédit Agricole holds the 13th position among the 169 banks in the country.

ProСredit Bank Initially, ProСredit Bank founded in Ukraine back in 2001 concentrated on loans for micro, small and medium businesses. In several years, the bank underwent a rebranding and offered its services for private individuals as well. As the name suggests, the Ukrainian branch is a part of the international ProCredit group. The key shareholders include large corporations and financial groups like the German ProCredit Holding, as well as the German KfW Development Bank. ProСredit Bank in Ukraine is notable for staying away from any political affairs or parties. According to the London's FitchRatings agency rate, ProСredit Bank has the highest stability rank AAA(ukr), which states the stable prognosis for the bank's development. According to the National Bank of Ukraine interest rate ranking, ProСredit Bank holds the 16th position among the 169 banks in the country.

OTP Bank Back in 1998, what we know now as OTP Bank was owned by Raiffeisen. However, in 2006, the leading Hungarian financial group OTP Bank bought the Ukrainian branch and became its 100% shareholder. The OTP group is known for being one of the largest banks in Europe, providing services for more than 12.5 million clients in 9 countries. OTP Bank is often recognized in Ukrainian bank ratings. For instance, in 2016 Forbes magazine included it in the Ukrainian Banks viability rating. The same year, the bank received the highest rating of bank deposits reliability in research conducted by Standard Rating. OTP Bank provides the usual range of services for individual clients: thus, savings deposit, child deposit, Internet banking, and money transfers are all available here. Legal entities are catered for in the bank as well. According to the National Bank of Ukraine interest rate ranking, OTP Bank holds the 9th position among the 169 banks in the country.

Oschadbank One of the biggest banks in Ukraine, Oschadbank, also called the State Savings Bank of Ukraine, has more than 3000 branches all over the country. The bank was founded in 1999; it belongs to the three 100% state-owned high-ranking banks along with UkrEximBank and PrivatBank. The bank is known for being one of the two in the country that grants its customers' deposits full support by state law. Besides, Oschadbank incorporated systems like Apple Pay and Google Pay rather quickly compared to other banks in Ukraine. The FinAwards 2018 also granted Oschadbank the title of the most technologically-advanced bank in Ukraine: the bank boasts services like MasterPass and MetroPass, which allows customers to pay the public transport fee, as well as the NFC Ring - a cutting-edge secure payment technology. According to the National Bank of Ukraine interest rate ranking, Oschadbank Bank holds the 2nd position among the 169 banks in the country.

UkrExim Also called the State Export-Import Bank of Ukraine, UkrExim is one of the three 100% state-owned high-ranking banks in Ukraine. UkrExim was founded in 1992; nowadays it has 24 branches and 41 offices, including international branches in London and New York. The bank cooperates with about a hundred financial establishments around the globe and boasts expertise in green financing. UkrExim provides services mainly for small and medium businesses, corporate clients and private individuals. As of 2018, the bank has AA(ukr) rate granted by the Fitch Ratings rating agency as well as positive ratings from Moody’s Investors Service in terms of long- term foreign and local currency deposits. According to the National Bank of Ukraine interest rate ranking, UkrExim Bank holds the 4th position among the 169 banks in the country.

Ukrgasbank One of the biggest Ukrainian banks, Ukrgasbank is also one of the oldest, founded in 1993. The bank boasts of its 94,9% of share capital that belongs to the State of Ukraine. Its auditor is Ernst & Young, one of the largest financial firms in the world. The clientele of Ukrgasbank reaches almost 900 thousand individuals, as well as more than 46 thousand corporate and SME customers. It's worth noting that corporate, small and medium businesses are the main focus of this enterprise. Besides, Ukrgasbank has adopted the green finance policy. As of 2018, the bank has more than 200 branches all over Ukraine. The Expert Rating agency granted Ukrgasbank the uaAА+ rate, meaning the bank is stable and has a high credit rating. According to the National Bank of Ukraine interest rate ranking, Ukrgasbank Bank holds the 6th position among the 169 banks in the country.

KredoBank KredoBank founded in 1990 belongs to the list of high-ranking companies with foreign investments. In this case, the share of the biggest Polish Bank Polskі SA makes Kredobank the largest in Ukraine with Polish investments. The bank has one hundred branches in nearly all regions of Ukraine. Its clientele is mostly private individuals (more than 480 thousand) and legal entities (more than 50 thousand). Throughout the years of its existence, Kredobank received numerous awards. Among the latest are 'The Best Credit for Business' and 'The Best Credit for the Real Estate in the Secondary Market' awarded by Prostobank Awards in 2018. The Expert Rating agency granted Kredobank the stable uaAAA rate. According to the National Bank of Ukraine interest rate ranking, KredoBank Bank holds the 15th position among the 169 banks in the country.

PrivatBank Finally, PrivatBank winds up our top 10 Ukrainian banks list. Founded in 1992, nowadays Privat is the largest commercial bank in Ukraine in numerous aspects from the number of clients to the loan portfolio. Indeed, almost every small business or private person in Ukraine has an account in Privat. In 2016, the bank became 100% state-owned and is one of the two banks in Ukraine that grants its customers' deposits full support by state law. PrivatBank is known for incorporating various cutting-edge innovations, including LiqPAY system, the Privat24 Internet Banking, Apple Pay and others. According to the National Bank of Ukraine interest rate ranking, PrivatBank holds the 1st position among the 169 banks in the country. The following list of Ukrainian banks is the editor's choice based on reliability, security and finance ratings from minfin.com.ua. All banks are listed in a random order. Photo source: unsplash.com. All images belong to their rightful authors.

Лекція №9

Тема лекції: «Співбесіда»

План лекції

1. How to prepare? 1.1. How to prepare for a job interview 1.2. How to prepare for a phone interview 1.3. How to prepare for a video interview 2. Some steps that you should do 2.1. Research the company 2.2. Read and review the job description 2.3. What to wear to a job interview 2.4. Plan your journey to the job interview 3. How to act in an interview 4. Common interview questions and answers 4.1. What are behavioural interview questions? 5. Job interview tips: dos and don'ts 5.1. Do 5.2. Don't 6. The most common interview questions

Література:

1. Oleg Tarnopolsky and Svitlana Kozhushko, Raisa Bezugla, Yulia Degtiariova, Pauline Gibson.BUSINESS PROJECTS – Dnipropetrovs’k, 2001. 2. https://www.roberthalf.com.au/career-advice/interview 3. https://www.monster.co.uk/career-advice/article/what-are-the-most-common-job- interview-questions

Зміст лекції

1. How to prepare? 1.1. How to prepare for a job interview You never get a second chance to make a great first impression during your job interview, so knowing how to prepare for a job interview and having a well-prepared plan is vitally important to increase your chances of landing that dream job. Interview preparation is the key to success and a well-polished presentation can give you an edge over others whose credentials might just be better than yours.

1.2. How to prepare for a phone interview In today’s digital world some hiring managers choose to conduct preliminary interviews by phone. Phone interviews can be challenging as you're not physically in the room with your interviewer and in some cases, you have to work even harder to stand out. Take phone interviews seriously. Dressing as you would for any other interview will put you in the right mindset. Also, sit at a desk or table. It is important to create a setting similar to as you would be sitting in front of the hiring manager.

1.3. How to prepare for a video interview As with phone calls, video interviews can be tricky - the good news is, at least during a video interview, the hiring manager can see you. Video interviews are a great way to connect and can save both parties the hassle of travel. Before your video interview make sure your technology is up to date and working. Take the time to also check that your surroundings are clean and tidy. It may seem obvious, but in the midst of delivering an answer, it can be easy to forget that you're sitting in front of a camera.

2. Some steps that you should do 2.1. Research the company Organisations look to hire people with similar values to those of the company culture. Researching the company before an interview will give you an insight into the organisation's future goals and plans and being able to discuss these points will make you seem like a long- term investment to your future employer. The following interview preparation tips will give you a guide as to which aspect of the company should be researched:  Company financials: Check the company website. Doing a Google search can also uncover the current state of the company. Have they gone through a merger? - or have they expanded recently? LinkedIn is also a good source of information.  Culture: Look at LinkedIn and Facebook or check Google reviews for comments by current or former employees.  Executive team: Look through the company website to research the company hierarchy and find out who the executives are.  Competitors: Find out who the company’s main competitors are and look into the websites of organisations in the same industry.

2.2. Read and review the job description You’ve received a call for that dream job, so how do you prepare for the interview? The first step in the preparation process should be to go back and review the job description. Most job descriptions follow a similar pattern and are usually categorised by the following points:  Job title/Department  Duties and tasks  Skills required The job title and department will give you an understanding of the major purpose of the position and where the role fits into the organisation, allowing you to discover who your potential line manager could be. Read and review the job description very thoroughly and be sure to align your competencies with the skills required for the job. You will consequently ready yourself for questions around your previous experiences, performing similar duties in other organisations.

2.3. What to wear to a job interview If you're wondering how to dress for an interview, you're not alone. Wearing the right clothes to the interview won’t get you the job, but wearing the wrong clothes will sink any chances of impressing the interviewer. There is one rule that stands above all: Dress professionally. Wear business attire appropriate for the role, while still making sure you feel comfortable.

2.4. Plan your journey to the job interview When preparing for a job interview one of the most important things to consider is how you are going to get there. A failure to plan is a plan to fail. If you are planning on driving to the interview, make sure you fill your car with fuel the night before. You don’t want to be filling up on the way dressed in your suit. Make sure you arrive on time, or better yet, at least 15 minutes early. Ensure this by knowing the address and if you can, have a trial run a couple of days before. The morning of the interview, check the traffic reports and have a backup route planned just in case. If you are travelling by train or bus, make sure you check the weather report the night before and keep an eye on the public transport websites for any delays. Look out for track works or traffic conditions that can potentially delay your train or bus trip. Go to bed early the night before and wake up early to give yourself plenty of time.

3. How to act in an interview Once you've completed your interview preparation, the next step is to ace the job interview itself. Whether you get offered the job depends largely on how you perform during the interview, so its imperative to make a great first impression on your hiring manager. It's not just what you do, it's also what you say, and how you say it. Read our job interview tips on questions to ask in an interview below.

4. Common interview questions and answers The most important part of preparing for an interview is practicing how to answer interview questions you might be asked on the day. Knowing the most common types of job interview questions is an advantage - that way, you can craft your answers well in advance, and feel confident in your responses when the pressure is on. Our common interview questions and answers guide will help you prepare for your next job interview.

4.1. What are behavioural interview questions? Have you ever wondered what behavioural interview questions (BIQs) are - and how to answer them? We’ve compiled the ultimate and definitive guide to help you respond to behavioural interview questions with ease in your next interview.

5. Job interview tips: dos and don'ts 5.1. Do:  Dress to impress. Make sure your clothes are clean, ironed and presentable.  Make eye contact, and begin with a strong handshake. This will signal your confidence when you meet your interviewer for the first time.  Sit still, with your feet firmly on the ground. This will help you maintain your posture and avoid fidgeting.  Remember your CV details. In particular the experience most relevant to the role you're interviewing for.  Make a note of your questions. Bring a note-pad if you feel you might forget important points.  Remember. It's just as important for the interviewer to sell the benefits of working at their business, as it is for you to impress your next potential employer.

5.2. Don't:  Turn up late to the interview. If for some reason on the day it's unavoidable, call ahead to let your interviewer know your expected time of arrival.  Dress sloppily or inappropriately. Not sure what to wear? Read our guidelines.  Smoke before your interview. Whilst a quick cigarette might seem like a good idea to calm your nerves, the smell will be noticeable and unpleasant for your interviewer.  Volunteer your weaknesses. Whilst honesty is always the best policy, there is no need to volunteer your shortfalls unless asked directly.  Criticise your current or previous employer. Doing so could give your interviewer the impression you're difficult to work with.

6. The most common interview questions These are the ten most frequently-asked interview questions that you can expect to face: 1. What can you tell me about yourself? 2. Can you list your strengths? 3. What weaknesses do you have? 4. Why should I consider hiring you? 5. Where do you see yourself five years from now? 6. Why do you want to work here? 7. What is your salary expectation? 8. What motivates you? 9. What makes a good team player? 10. Is there anything that you would like to ask me? It is fair to say that you might not be asked every one of these questions at an interview. You may even be asked other, more bizarre ones, like ‘if you were an animal, which would you be?’ Such questions are designed to see how good you are at thinking on your feet so you cannot truly prepare for them. Just relax and say something sensible. For the other common interview questions, consider how you might answer them before you get face-to-face. 1. What can you tell me about yourself? Talk about yourself in summary and avoid rambling. Your detailed work history can be found on your CV, after all, so focus on elements that you want to highlight rather than going through everything. It is okay to discuss your personality and what ambitions you have. Ideally, you will give the interviewer a positive insight into how you would fit in as an employee. 2. Can you list your strengths? An exhaustive list of adjectives, such as ‘capable’, ‘hard-working’ or ‘diligent’, won’t really portray you well because anyone can make such claims about themselves. Instead, think about three things that you do well and give concrete examples. If you are a strong organiser, for example, then talk about a project that you coordinated, or a new procedure that you formulated. If you are good with numbers, then talk about your skills with spreadsheets or financial matters. 3. What weaknesses do you have? Never say that you have no weaknesses. Everyone who does this comes across like they have simply not prepared for the interview. Likewise, avoid giving yourself a back- handed compliment, such as, ‘I work too hard.’ Remember that being able to identify a weakness is a strength. Focus on an area of your work that needs to be improved. You might have been trained in something that you’d like to take to the next level, for example. Point out that this is a weakness, but something you have identified and are focusing on resolving. Interviewers want to understand that you have the ability to be honest about yourself and to seek self-improvement. 4. Why should I consider hiring you? If you are highly qualified for the job you are applying for, then you should point this out, but don’t forget that other people being interviewed may match or exceed your suitability. In such cases, focus on what else you can bring to the job, perhaps with your soft skill set, like being able to integrate well with existing members of the team, for instance. Don’t give up on an interview if you´re not fully qualified for the job. Appeal to the interviewer’s desire to hire someone with drive. If you are not the finished article, then point out how keen you are to learn and be mentored. Accentuate the positive aspects of what you can do now and how quickly you will be able to progress with what you don’t know if hired. 5. Where do you see yourself five years from now? This is your chance to talk about your wider ambitions and goals. It is okay to say you’d like to progress on from the position on offer in most cases. Bosses want to hire people with determination so don’t be shy about sounding ambitious or hungry for success. Ideally, try to contextualise your ambitions within the organisation that you are applying to join because this tends to go down better. 6. Why do you want to work here? This is your chance to show that you have researched the company you are applying to work with. Avoid saying anything negative about your current employer which makes it seem you are simply after any job at all. Typical things you might say are that the company operates in your chosen sector, that it provides a clearly structured career path and that the organisation has a good reputation. Don’t simply trot these ideas out, though. Do your research! 7. What is your salary expectation? This is one of the most troublesome questions for many interviewees. For some people, however, it causes no bother at all. It will depend on your personality as to how you feel talking about salary expectations. That said, there are some tips to help you deal with the question. Firstly, it is okay to talk about pay in terms of ranges and not to be specific about a particular number. It is also okay to include other benefits, like healthcare, pensions and time off within the context of salary. Make sure you have looked at other, similar jobs being advertised in other organisations so that you have an idea of the pay rate in the market. 8. What motivates you? Motivation is personal, so there is no wrong answer that you can give. It might be down to your desire to succeed and build a career, but it might also be because you want to provide for your family – both perfectly good answers if you choose to give them. In some professions, caring or vocational motivations might be worth mentioning, too. 9. What makes a good team player? Many people say in their CV that they are good at working cooperatively or are team players, but few say what this actually means. Think about examples from your past that demonstrate your ability to build bridges, form networks or simply get on with people. This needn’t be from your professional life. You could cite any examples from clubs or organisations to which you belong. Answering this question well is especially important for people who want to be team leaders or to manage a department. 10. Is there anything that you would like to ask me? Always have at least one question prepared in advance. This is your chance to drill down into an area of the business that might not have been covered in the interview. Alternatively, you may simply like to ask for feedback on how you have done in the interview. A good tip is to pick up on something that has been mentioned in passing by the interviewer about the job. Ask him or her to expand on this. Not only does it make you appear interested, but it shows that you have been listening attentively to what has been said. It should leave the interviewer with a good final impression of you. These ten questions are certainly not the only ones that can be posed, but they are the most common ones. Remember that you don’t need to answer all questions at an interview if you feel they are too personal or you are not comfortable with them. Getting yourself prepared for common questions is necessary prep work before attending an interview. Don’t make the answer come across as rehearsed; rather, just remember the gist of your answer and then let the sentences flow freely during the interview, which gives the interviewer a much better impression of you. Good luck!

Лекція №10

Тема лекції: «Співбесіда. Прийом на роботу»

План лекції

1. How to Interview for a Recruiting Job 1.1. Qualifications 1.2. Knowledge 1.3. Practice 1.4. Scheduling 1.5. Interview Style 2. Four Recruiting Tips to Conduct Better Interviews 2.1. Do the Homework 2.2. Ask the Right Questions 2.3. Have a Positive Attitude and Be Engaged 2.4. Follow Up and Provide Feedback 3. Situational Interview Questions for Recruiting 4. Situational Interview Questions for Collaboration and Teamwork 5. Situational Interview Questions for Culture 6. Other Interview Questions for Recruiters

Література:

4. Oleg Tarnopolsky and Svitlana Kozhushko, Raisa Bezugla, Yulia Degtiariova, Pauline Gibson.BUSINESS PROJECTS – Dnipropetrovs’k, 2001. 5. https://work.chron.com/interview-recruiting-job-1180.html 6. https://www.smartrecruiters.com/blog/recruiting-tips-job-interview/ 7. https://www.lever.co/blog/interview-questions-for-recruiters

Зміст лекції

1. How to Interview for a Recruiting Job 1.1. Qualifications Ensure your resume accurately represents your recruiting expertise, work history, credentials and qualifications. Recruiters, probably more than any other group of job seekers, should know the importance of submitting a cover letter and resume that capture the reader's attention. Use your knowledge of the recruitment and selection process for a successful job search. For example, create an online application that matches several of the applicant tracking system's keywords. Your resume and online application should include details about your success in finding candidates, your familiarity with the full life-cycle recruitment process, and examples of your involvement in activities such as mass-recruiting events and campus recruitment.

1.2. Knowledge Functional expertise for recruiters includes knowledge of life-cycle recruiting, applicant tracking systems, social media networking, industry expertise or specialty areas and sometimes on-campus recruiting or recruiting passive candidates. The ability to find candidates is a highly sought-after qualification for many recruiters, especially in high- demand fields such as health care and information technology. Recruiters with industry expertise know what qualifications employers seek for specialized roles; therefore, recruiters themselves are in high demand for certain fields. During your interview preparation, practice discussing your skills in these areas. If you have a specialty placement area, be able to demonstrate your expertise in those areas. For example, if you have a strong record of placements of registered nurses, you should be able to talk about RN clinical expertise; nurse specialty areas; and nurse careers, from staff positions to nursing management roles.

1.3. Practice Compile a list of questions that employers ask potential recruiters. Even if you have limited recruiting experience, here is the time to demonstrate your ability to succeed as a recruiter. Basic qualifications most companies seek in recruiters include skills such as drafting job descriptions and job postings, collaborating with hiring managers on job requirements, scheduling and selecting finalist candidates. In addition, you need to be well-versed in the mechanics of recruiting, such as maintaining employment records and processing applications. If the company you're interviewing with has large-scale hiring events, practice talking about your expertise in handling mass recruitment, your ability to attract community sponsors during job fairs, and organizing networking and recruiting events.

1.4. Scheduling Many companies conduct preliminary telephone screenings to review an applicant's continued interest in the job. The best way to prepare for the phone interview is to review your resume line by line and make notes about your experience that you want to mention. You may have limited time to explain your work history, so select the most important highlights of your career to bring up. The next step in the selection process is the face-to-face interview, which is the stage during which you have more time to showcase your expertise and capabilities.

1.5. Interview Style Recruiters must have an engaging personality and almost an investigative approach to questioning. They must be able to put applicants and candidates at ease through communicating openly while gleaning information about their potential, through body language and other nonverbal cues. For this reason, a recruiter herself may be very aware of how she comes across in an interview. Use the same techniques you do when you're on the other side of the desk to make the best impression in your interview.

2. Four Recruiting Tips to Conduct Better Interviews 2.1. Do the Homework It’s no secret that recruiters manage extremely busy schedules, but preparing for an interview should be the recruiter’s main focus, especially with the expectation that candidates will conduct their own research before coming in. Proper interview preparation includes:  Having a clear understanding of the position, its responsibilities, and where the role fits in the larger team structure.  Gathering a set of open-ended interview questions.  Reviewing the candidate’s documents and credentials—resume, LinkedIn profile, cover letter, application.  Preparing for candidate questions about the role—financial compensation, metrics for success, and expectations.  Providing an assignment, assessment, or task for after the interview (if applicable).  Knowing the next steps to advance the candidate to the next stage of the hiring process.

2.2. Ask the Right Questions Questions asked during an interview should reveal information about the candidate’s experience, their motivation for applying, and what skills they offer. Open-ended enquiriesthat allow for creative responses are the best way to discover what recruiters and hiring managers are looking for. Examples of good open-ended questions are:  What made you decide to apply for this job?  Where have you interviewed recently? What opportunities have you had?  Why did you leave your last job?  Can you describe your most significant career accomplishment?  What duties or responsibilities do you want more of in your next role? The role may also influence the types of questions being asked. When hiring for entry- level jobs, hiring managers often have to read between the lines and evaluate a candidate’s potential based on limited work experience and how they present themselves in the interview process.

2.3. Have a Positive Attitude and Be Engaged For many candidates, a recruiter may be their first interaction with a company, so it’s crucial to foster a positive experience for the candidate. Recruiters should be passionate about their company, the role they are hiring for, and the interview process. Demonstrating a professional and enthusiastic attitude will calm nervous candidates and allow for a more meaningful exchange. Actively listening to a candidate’s responses and asking thoughtful follow-up questions demonstrate a recruiter’s attentiveness, and reflect positively on the company. As an ambassador, it falls on the recruiter to convey the company’s principles, employer brand, Employee Value Proposition, and other unique values.

2.4. Follow Up and Provide Feedback Candidates value transparency in the hiring process, so creating a feedback loop that informs them of their status after the interview greatly contributes to the candidate experience. If possible, recruiters should offer candidates feedback on their interview, regardless of whether they will advance to the next stage. Maintaining communication means that when it comes time to extend a job offer, the candidate is more likely to accept, and faster, because of this rapport. 3. Situational Interview Questions for Recruiting  Think about the last job you filled. Describe the exact process you went through to identify and attract high-performing candidates.  Think of the last senior member of your company you hired (engineering, sales, marketing). What was their job title. What actions did you take to bring them to your company?  Tell me about a time where you had to sell a candidate on a job at your company. What did you say to make them consider it. What was the outcome?  Describe a situation where you failed to fill an open position. What went wrong? What would you do differently?  Take me through the steps you take to build a talent pipeline.  Tell me about the most challenging role you’ve ever worked. What was it and what made it difficult?  Tell me about the last interviews you’ve conducted. What was key in determining if candidates were a good fit?  During your interview process, how do you typically structure your interview?

4. Situational Interview Questions for Collaboration and Teamwork  Describe a situation where you mentored a junior recruiter. What did you do and how you help them develop?  Tell me about a situation where you needed to work with your team to fill a role. How did you collaborate? What was the outcome?  Tell me about a time where you and a teammate had a disagreement. What steps did you take to resolve the issue?  Tell me about a time where you worked with a difficult to please hiring manager. How did you ensure a functional working relationship?  Tell me about your current (or past) job. How involved are the hiring managers in your recruiting process?

5. Situational Interview Questions for Culture  Tell me about a time where you worked somewhere where the culture was not the best fit for you. Why was it a bad fit and what would you have changed to make it better?  Tell me about a time where you worked in an unmotivating environment. How did you motivate yourself to continue your responsibilities?  Tell me about a time where you worked in a fast-paced culture. What did you do to ensure you met project/task deadlines? Any specific tricks or tools that you used?  Tell me about a time where you knew something at your company needed to change. Did you do anything to drive the change? How did your team/company react?

6. Other Interview Questions for Recruiters  What tools do you use for sourcing? Why do you choose those over others?  What’s your preferred ATS. Why?  What are your favorite roles to recruit for? Why?  Do you consider yourself to have any speciality when it comes to recruiting?  What are your favorite interview questions to ask candidates? Why?  What do you think is key for a successful recruiting process?  Are you responsible for checking references? What’s your typical reference checking process?  Have you ever recruited anyone who wasn’t qualified for the job?

Лекція №11

Тема лекції: «Призначення зустрічей»

План лекції

1. How prepare for the meeting 1.1. First – Know Your Immediate Goal 1.2. Second – Know Their Fear 1.3. Have A Discussion About Their Experience 1.4. Your Real Goal 1.5. Get On The Same Side 2. Top 10 Job Interview Etiquette Tips 3. Life experience 3.1. The Show Must Go On 3.2. The Day After

Література:

8. Oleg Tarnopolsky and Svitlana Kozhushko, Raisa Bezugla, Yulia Degtiariova, Pauline Gibson.BUSINESS PROJECTS – Dnipropetrovs’k, 2001. 9. https://www.youtube.com/watch?v=4NIK5R7Rek8 10. https://www.forbes.com/sites/ianaltman/2015/05/26/how-to-stand-out-in-a-job- interview-and-any-business-meeting/#44c3e3a82160 11. https://richtopia.com/effective-leadership/worried-about-a-meeting-or-interview- remember-this-story

Зміст лекції

1. How prepare for the meeting 1.1. First – Know Your Immediate Goal It’s a job interview. So, you might be thinking that your goal is simply to get hired. Though that might be your ultimate goal, you should first take the time to understand the process. In fact, when you are first confirming the interview, you might want to ask a question like “What is the process you typically follow when hiring someone for this position?” You might discover that the initial interview is conducted by someone in the human resources (HR) department. If you make it past them, then you get to step two. If that goes well, then at step three you would meet the person who would be your supervisor. If you uncover that those three steps are the process, then recognize that your goal is to be interesting enough for the HR person to move you to the second step. Trying to push the HR person to make the hiring decision at this point would be counterproductive. Businesspeople often make this same mistake in sales situations. It is easy to focus on your own goal or objective. However, it is more important to understand and appreciate your client’s situation and process. Much like the HR person, the team member doing initial research about potential vendors is not likely to make a purchase decision on the spot. Similarly, your goal is establish enough interest to reach step two. 1.2. Second – Know Their Fear If you are the person conducting the interview in one of the early steps, you probably have two fears: 1. You’ll overlook a good candidate; 2. You’ll recommend someone who makes you look stupid. Put another way, you don’t want your colleagues to think you are either not doing your job, or wasting their time. Remember that these concepts apply whether you are a job applicant or a sales professional. As the person being interviewed, you don’t need to ask the interviewer what worries them. That might seem strange. However, thinking about the situation from their perspective gives you an angle most will overlook. Read on to discover the sequence of questions to ask to discover what might be on their mind.

1.3. Have A Discussion About Their Experience These next questions will help you to stand out. The sequence is very important to follow: 1. “Can you please share with me what has made some candidates not work out so well?” Once they share some information about the failures, then ask 2. “What attributes made the successful candidates wildly successful?” Feel free to ask clarifying questions for them to share more details.

1.4. Your Real Goal The interviewer might describe reasons for failure that you recognize as your own shortcomings. They might conversely share success criteria that echo your resume. In either case, don’t be a square peg trying to fit into a round hole. Either answer is good. In a job search, your goal is to uncover the truth as quickly as possible. Specifically, your goal is to determine if there is a good fit between their needs and what you offer. Just like in a business sales situation, your goal is not necessarily to make the sale. Once they have shared enough information about the attributes of good and bad outcomes, ask 3. “Which category do you think I am in?” You’ll get to the truth very quickly. Remember, this applies to job applicants and business alike.

1.5. Get On The Same Side In Same Side Selling, we describe these types of conversations as “Finding Impact Together.” When you are pushing, the natural response is resistance. But, if you get on the Same Side with your customer - in this case the interviewer - then you are working together to find a good fit. When you have a shared objective to see if there is a good fit, then both sides can work together as if you are solving a puzzle. When this happens, when the interviewer or potential customer sees a fit, they become your advocate, since you represent a good outcome for them. By focusing on the customer’s (or interviewer’s) needs and experience, you stand out above the competition .

2. Top 10 Job Interview Etiquette Tips What to Wear to a Job Interview When you are dressing for a job interview, the image you present is really important. Your image is what makes the first impression on the interviewer; that first impression is the one that sticks, so it's important to dress appropriately when interviewing. Regardless of the type of job you're interested in, you want that first impression to be a great one. When dressing for an interview for a professional position, dress accordingly in business attire. If you're applying for a job in a more casual environment, like a store or restaurant, it's still important to be neat, tidy, and well-groomed, and to present a positive image to the employer.

What to Bring to a Job Interview Coming prepared to a job interview is important. Bring extra copies of your resume along with a list of references to offer the interviewer. Also, bring a list of questions to ask the interviewer. If you're interviewing for a tech or web job and you want to show examples of your work, it's okay to bring your laptop or tablet to show the interviewer what you have accomplished. What shouldn't you bring? Don't walk into a job interview with a coffee cup or bottle of soda or water or anything else to eat or drink. Don't chew gum. Your cell phone should be turned off and out of sight. You don't want to be the applicant whose text messages or calls disrupted the interview.

When to Get to a Job Interview It's important to arrive a few minutes early, or on time, at the latest, for a job interview. Know where you're going, how much travel time you need, and how to get to the interview location. Check out the logistics ahead of time, so you ensure that you're not late. Giving yourself a bit of extra time will provide you with an opportunity to stop in the restroom and freshen up, if need be, to make sure you don't have any hair, makeup, or wardrobe malfunctions. A few extra minutes will also give you an opportunity to catch your breath and stay calm. An interview is even more stressful than normal if you're rushing to get there on time.

How to Greet the Interviewer When you arrive at a job interview, introduce yourself to the receptionist, if there is one. Let them know who you are and who you are scheduled to meet with. Greet your interviewer with a firm handshake and introduce yourself. Be prepared for a little small talk, but don't overdo it. Follow the interviewer's lead and let them guide the direction of the conversation.

The Best Way to Respond to Interview Questions When you respond to interview questions, listen carefully to the questions, take time to phrase your responses, and ask the interviewer to repeat the question if you're not sure what they are asking. Be brief and don't ramble when you respond. However, do be sure that your responses answer the questions, are focused, and highlight the skills you have that are relevant to the job. Keep in mind that your responses are your sales pitch. You're selling the interviewer on yourself as the best candidate for a second interview and the job, so be sure you focus on your relevancy, i.e., why you are a good candidate, how you can do the job, what you can contribute, and how you will benefit the company if you're hired.

What to Give the Interviewer Bring extra copies of your resume with you, in case the interviewer needs a copy, or you end up meeting with several people. Have a list of three references printed out, including contact information for each reference, ready to offer the recruiter at the end of the interview. A pen and notepad are always useful for jotting down questions you might want to ask, and for making a note of the names of people you meet with.

How to Close an Interview Toward the end of the interview, let the hiring manager know that you think the job is an excellent fit and that you are very interested in the job. It's appropriate to ask what the next step in the hiring process will be and when you might expect to hear. Finally, thank the interviewer for the time they spent interviewing with you.

Be Prepared for a Phone Interview Phone interview etiquette is just as important as in-person job interview etiquette when it comes to getting hired. That's because, regardless of whether you interview on the phone or in-person, a successful interview will get you to the next stage of the hiring process. Review phone interview etiquette tips, including phone interview techniques, advice on how to prepare for a phone interview, and phone interview questions and answers, so you can ace the interview.

Remember Your Table Manners Dining with a prospective employee allows employers to review your communication and interpersonal skills, as well as your table manners, in a more casual environment. Good manners can give you the edge over another candidate, so, take some time to brush up your dining etiquette skills before you go to the interview.

Follow Up With a Thank You Note Following up with a thank-you note is on the list of interview etiquette best practices. Taking the time to say thank you not only shows that you appreciate the interview, but it also gives you an opportunity to reiterate your interest in the job. In addition to saying thank you, refer to anything the interviewer mentioned that enhanced your interest and summarize why you think the job is a good match and why you're a strong candidate for the job.

3. Life experience Do you ever get nervous before a sales presentation or a job interview? If so, this experience may help you out. As a young professional in 1994, I landed the job interview I had been waiting for. I found out about the interview while on a business trip to Boston. Because my would be boss was short-handed and overwhelmed with work, he wanted to fast-track the hiring processing, scheduling the interview as soon as possible. I quickly altered my flight itinerary so I could do the interview right away. That led to a crazy patchwork schedule with flights that departed late one night and insanely early the next morning. For reasons I cannot remember, I had to fly to one city, spend the night and catch the first flight out the next day. As I booked the flights, I knew that at best it was going to be a blurry-eyed journey. As I left Boston for my cross-continental trip, my stomach started to hurt. By the time we stopped for a layover in Chicago, I was feeling downright sick. As luck would have it, severe weather over the southern plains backed-up air traffic nationwide, delaying my departure from Chicago by several hours. By the time I landed at the sleep-over destination, it was after midnight, several hours later than my scheduled arrival. Not only was I sicker than a dog, my flight the next morning was scheduled to leave at 4:50 a.m. Instead of sleeping, I spent most of the night throwing up. Knowing what I know now, I simply would have rescheduled job interview, explaining that I was ill. But back then I thought I could do anything. No illness would slow me down! I forced myself into the shower at 3 a.m., managed to get back to the terminal and got on that plane. By the time I landed, I was even worse off and fought dizziness and nausea as I drove to the interview site.

3.1. The Show Must Go On Upon arriving, the director greeted me and took me into a conference room for an interview with an eight-person committee. As luck would have it, they seated me at the head of the table in front of a big window where the sun shone through, beating on my body like a radioactive beam of death. At the very beginning of the interview, adrenaline allowed me to forget how sick I was. Unfortunately, I was soon reminded. It was so hot in there that drops of sweat started forming on my forehead and dripped down my face. After a few minutes, sweat was soaking through my shirt. Then the nausea came back. As I was answering questions for this committee, I was physically forcing myself not to get sick. Committee members were looking at me with strange expressions – that mixture of pity and concern. At one point, I was debating in my head whether it would be worse to suddenly jump out of my seat and sprint to the bathroom or just throw up all over the conference table. Somehow, I made it through the committee interview without getting sick. The director then told me another three or four people were scheduled to interview with me over lunch. We walked to an exclusive restaurant, one of those clubs where you must have a membership to be admitted. Problems continued at the lunch meeting. To reduce the risk of a very embarrassing situation, I made sure not to let any food actually enter my stomach. To make it seem less obvious, I played around with my food while I talked and answered questions. Now, when I talk, I have a tendency to gesture quite a bit with my hands. I don’t know how exactly it happened, but apparently the tines of my fork were under the rice pilaf while the handle was hanging off my plate. Somehow, my hand hit the edge of the fork, converting it to a food catapult. Rice pilaf flew up into the air like a fountain, covering everyone at the table. People were literally picking rice and bits of chopped veggies out of their hair and brushing it off their clothing. At the end of lunch, as we all stood up, rice pilaf fell from everyone’s laps. It was an unmitigated disaster. As he walked me out of the club, the would-be boss, told me, “We’ll be in touch.” I left the interview, knowing I wouldn’t get the job. 3.2. The Day After Sitting in my office a couple days later, my phone rang. It was the director who had interviewed me. “Jeff, we offered the job to someone else,” he said. “The committee just didn’t feel comfortable with you.” I wanted to tell him that I didn’t feel too comfortable around them either! Obviously, I was disappointed, but I didn’t stay depressed for long. A different job interview opportunity popped up later that week. In a delicious twist of irony, one of the interviewers embarrassed himself during that interview. As the vice president took a bite out of his sandwich, the turkey, lettuce and tomato squirted out onto the table. I couldn’t help but smile, thinking “Thank God it was somebody else this time!” Okay, do you feel better now? No matter how nervous you may get before a job interview, a meeting with a client or a presentation to your investors, just think about me, the guy who showered people with rice pilaf and smile. Chances are minuscule that you’ll ever screw up as badly as I did.

Лекція №12

Тема лекції: «Супровідний лист»

План лекції

1. What Is a Cover Letter? 2. The Different Types of Cover Letters 3. Customize Your Cover Letter 3.1. Each cover letter you write should be customized to include 4. Format Your Cover Letter 5. Edit and Proofread Your Cover Letter 6. Matching your cover letter to the job 7. 5 Reasons Why You Need a Cover Letter 8. The Anatomy of a Cover Letter 9. How to Write a Cover Letter in 5 Easy Steps

Література:

12. Oleg Tarnopolsky and Svitlana Kozhushko, Raisa Bezugla, Yulia Degtiariova, Pauline Gibson.BUSINESS PROJECTS – Dnipropetrovs’k, 2001. 13. https://www.thebalancecareers.com/cover-letters-4161919 14. https://youthcentral.vic.gov.au/jobs-and-careers/applying-for-a-job/what-is-a- cover-letter/how-to-write-a-cover-letter 15. https://resumegenius.com/how-to-write-a-cover-letter

Зміст лекції 1. What Is a Cover Letter? Before you start writing a cover letter, you should familiarize yourself with the document’s purpose. A cover letter is a document sent with your resume to provide additional information on your skills and experience. The letter provides detailed information on why you are qualified for the job you are applying for. Don’t simply repeat what’s on your resume -- rather, include specific information on why you’re a strong match for the employer’s job requirements. Think of your cover letter as a sales pitch that will market your credentials and help you get the interview. As such, you want to make sure your cover letter makes the best impression on the person who is reviewing it. A cover letter typically accompanies each resume you send out. Employers use cover letters as a way to screen applicants for available jobs and to determine which candidates they would like to interview. If an employer requires a cover letter, it will be listed in the job posting. Even if the company doesn’t ask for one, you may want to include one anyway. It will show that you have put some extra effort into your application.

2. The Different Types of Cover Letters There are three general types of cover letters. Choose a type of letter that matches your reason for writing.  The application letter which responds to a known job opening (see cover letter samples)  The prospecting letter which inquires about possible positions (see inquiry letter samples)  The networking letter which requests information and assistance in your job search (see networking letter examples) When you are applying for a job that has been posted by a company that’s hiring, you will be using the “application letter” style.

3. Customize Your Cover Letter It is very important that your cover letter be tailored to each position you are applying to. This means more than just changing the name of the company in the body of the letter.

3.1. Each cover letter you write should be customized to include:  Which job you're applying for (include the job title in your opening paragraph)  How you learned about the job (and a referral if you have one)  Why you are qualified for the job (be specific)  What you have to offer the employer, and why you want to work at this specific company (match your skills to the job description, and read up on the organization’s mission, values and goals to mention in your letter)  Thank you for being considered for the job Here’s more on how to personalize your cover letter.

4. Format Your Cover Letter Your cover letter should be formatted like a professional business letter. The font should match the font you used on your resume, and should be simple and easy to read. Basic fonts like Arial, Calibri, Georgia, Verdana, and Times New Roman work well. A font size of 10 or 12 points is easy to read. Standard margins are 1” on the top, bottom, and left and right sides of the page. Add a space between the header, salutation, each paragraph, the closing, and your signature. You can reduce the font and margin sizes to keep your document on a single page, but do be sure to leave enough white space for your letter to be easy to read. Follow these cover letter formatting guidelines to ensure your letters match the professional standards expected by the hiring managers who review applications.

5. Edit and Proofread Your Cover Letter Remember to edit and proof your cover letter before sending it. It may sound silly, but make sure you include the correct employer and company names - when you write multiple cover letters at once, it is easy to make a mistake. Printing out and reading the letter aloud is a good way to catch small typos, such as missing words, or sentences that sound odd. Always double-check the spelling of your contact's name, as well as the company name. Here are more tips for proofreading a cover letter. If possible, enlist a friend or a family member to help proofread your cover letter, as two pairs of eyes are better than one and even professional proofreaders don’t always catch their own mistakes.

6. Matching your cover letter to the job Use a different cover letter for each job you apply for. Your cover letter needs to show that you know what the job involves, and what the employer is looking for. To do this, be specific about your skills and qualities. You also need to show how they match the needs of the job or the organisation. Here are three simple ways to make your cover letter as specific as possible: 1. Find out who to address it to Try not to address your letter ‘To whom it may concern’. Find out the name of the person who will read your application. This might take a little effort, but it's worth it. If you found the job in an advertisement, it will probably name a person to send the application to. If it doesn’t, call the employer or advertiser and ask who to send the application to. Telephone is best, but email them if you can’t find a contact phone number. If you find out the person's name, don't use their first name. Use either ‘Mr’ or ‘Ms’ and their last name instead. 2. Find out more about the job When finding out who to address your application to, you could also try to contact that person so you can ask questions. This can help you match your cover letter (and resume) to the job. You could ask:  Does the job involve working as part of a team?  Who would I be reporting to if I got the job?  Can you tell me more about the kind of person you're looking for?  Is there a position description I can look at? (Only ask this if the job advertisementdoesn’t mention a position description.) Note down the answers to these questions as they can be used in your cover letter 3. Find out more about the company Find out more about the company so you can tailor your cover letter for the job. Here are some tips:  If you know the name of the company, look for information online.  If the company has a website, visit it (especially their ‘About us’ page).  If the company name isn't in the advertisement, call the recruitment agency or advertiser and ask who the employer is.

7. 5 Reasons Why You Need a Cover Letter Although a cover letter is brief, a good one packs a punch. If you write yours well, it can: 1. Successfully introduce you to the hiring manager 2. Make a strong case why you’d be a good fit for the job 3. Prove your desire to work at their company in particular 4. Fill in any missing data that couldn’t be included on your resume 5. Give the hiring manager a call to action

8. The Anatomy of a Cover Letter

A Contact Information – List your info and that of your target company near the top. Try to avoid typos. B The “Intro” Paragraph – Grab the reader’s attention. Introduce yourself, & state why you’re a good fit. C The “Hard Sell” Paragraph – Prove how qualified you are. Use bullet points to highlight achievements. D The “Research” Paragraph – Learn about your target company, & explain how you fit into their future. E The “Action” Paragraph – Let the hiring manager know what times you’re available to interview. Mention you’ll follow up with them if necessary. F The Sign-off – Any of “Sincerely,” “Regards,” “Best Regards,” and your name should do the trick.

9. How to Write a Cover Letter in 5 Easy Steps This is a simply written guide — follow it, and you will land interviews faster. Step #1: Add the Correct Contact Information

To begin, include both the employer’s and your contact information. Be careful here – a small slip-up could land your application somewhere you didn’t intend it to go. Check out our example below:

While this example demonstrates the information you need to include in the section, there are various ways to format it. Check out the cover letter templates below to get more ideas on how you can structure this section. No spelling or grammar errors! This one really goes without saying. Spelling mistakes make an awful first impression. Step #2: Write a Targeted Introduction (1st Paragraph)

Find out to whom you’re writing. Put yourself in the hiring manager’s shoes for a second. Would you like to be addressed as “Dear Sir or Madame?” or “To whom it may concern?” “Dear Sir or Madame” makes you sound like you’re from the year 1865, and “to whom it may concern” is very irritating to hiring managers. You can easily avoid this problem by doing your research. Look through the company’s website, LinkedIn, or even give the company a call to ask for the hiring manager’s name. Even if you get it wrong, it still looks like you’ve made an effort. For more information on cover letter greetings, check out our step-by-step guide on how to address a cover letter. Introduce yourself. In the first paragraph, begin by telling the employer the position you are applying for and how you learned about the opportunity. The rest of this paragraph should briefly present basic info about yourself, including: degree, area of study/expertise, and your career goals in terms of how they align with the goals of the company. Step #3: Sell Yourself as a Candidate (2nd Paragraph)

The second paragraph should respond directly to the job description written by the hiring manager. Describe how your previous job experiences, skills, and abilities willallow you to meet the company’s needs. To make that easier, you can (and should) literally include words and phrases from the job description in your cover letters. Don’t be too bombastic! The rule of thumb is that you’re allowed to be as boastful as you want – so long as you have the evidence to back it up. Step #4: Paint Yourself in the Company’s Future (3rd Paragraph)

To go the extra mile, do some research about the company, and try to find out what they are doing — and why — given the current state of their industry. In a third paragraph, explain how you can fit into that schema, and help push the company forward and achieve any goals you suspect they may have. Step #5: Employ a Call-to-Action + Sign-off (4th / Final Paragraph)

The final paragraph is called the “call to action.” Inform them that you’d love to get interviewed. Tell them that you’ll be in contact with them in a week if you don’t hear back. Thank them for spending the time to read your letter, and for the potential opportunity of interviewing with them. It’s important to not come off as too pushy, but you want to have conviction as well. A good sign-off will stick in the mind of the hiring manager, so make sure yours has the tone you’re trying to convey.

3. Page Structure (Alignment, Margins, Fonts) Aside from the content on the page, the actual look and feel of the document is also an important aspect of your letter. Elements such as margins, font size and style, and alignment all factor into the hiring manager’s overall impression of you. Here are a few quick tips when styling your own: 1. 1” – 1.5” margins are always a safe bet. If you are having trouble fitting everything on one page, there is some wiggle room, but be careful not to make the content look crammed together. 2. Don’t go below a 12-point font unless absolutely necessary. Anything below 12 can strain the eyes. 3. Font style is really a matter of preference. Try to choose one that looks professional or that matches what the employer uses on their website. Keep in mind that different styles will change the size of the font. 4. Maintain a uniform alignment throughout. We suggest keeping all paragraphs left-aligned. Formatting Your Cover Letter For Applicant Tracking Systems If you don’t know what an ATS is, you absolutely must read up on it before sending in your next job application. Applicant tracking systems are mostly designed to read through resumes, sifting through keywords and key-phrases to statistically determine whether to let you through to the next stage. 70% of jobs are filled via an applicant tracking system. Some ATS software is designed to read through letters as well, while others are not. You might as well be completely prepared. The good news is that simply by following the instructions we’ve written above, your letter should already be in good shape. If you’ve responded directly to the hiring manager’s job description, and included language from it in your own your letter, you already have a high likelihood of hitting statistically important keywords and phrases. 4. Free Copy-and-Paste Cover Letters (Text Versions) Simply click the section that best reflects your current life situation and work experience, then choose the “tone” of covering letter that best suits your personality. There are different cover letter format selections as well – choose one that you feel reflects you best. Now, get started – We recommend that you copy and paste your favorite template into one of our awesome looking pre-arranged cover letter templates. #1: High School Students Still in high school but looking to get into the job market? Copy and paste one of the examples below into Microsoft Word and tweak it to your exact specifications, and voila! You have your very own cover letter. Text Samples (With & Without Experience)

#2: Recent H.S. Graduates Fresh out of high school and looking for employment? You’ve come to the right place. Copy and paste one of the examples below into Microsoft Word, and tweak it to your exact specifications. That’s all it takes to create your very own cover letter. Text Samples (With & Without Experience)

#3: College / University Students Tuition is expensive, and working during our college days is unavoidable for many of us. To make thing as easy as possible for you to land your next job, we have two college- student specific formats for you to use freely. Text Samples (With & Without Work Experience)

#4: Recent College Graduates Congratulations, you’re out of college and on the job hunt! It’s time to find gainful employment. Copy and paste one of the examples below into Microsoft Word, and tweak it however you’d like. That’s really all it takes to create a personalized cover letter. Text Samples (With & Without Experience)

#5: Non-Students (Professionals & Other) Whether you’re a professional ready to move up a new corporate ladder or someone who simply needs a job, we’ve got you covered. Copy and paste one of the examples below into MS Word, and change it accordingly. Put it in a free, fashionable cover letter template to give it some extra oomph. Text Samples (With & Without Experience)

List of positive traits Adaptable Focused Proactive

Detail-oriented Hard-working Quality-oriented

Diligent Efficient Responsible

Results-oriented List of soft skills Analytical Leadership Problem-solving

Communication Management Research

Creative thinking Multitasking Service

Critical thinking Organizational Teamwork

Interpersonal Persuasion Technical

Language Planning Writing

6. Pairing Your Cover Letter with Your Resume If you’re this deep into the cover letter writing process, there’s a good chance you’ve already invested time in learning how to write a great resume as well. Whereas your resume acts as an informational anchor, your cover letter fits into more of a complementary role – bringing personality to your job application. When they work well together, more interviews are almost certainly the end result. You can pair these two crucial documents in multiple ways. Referring to the content of your resume in your letter is one strategy. Just be sure that there are no inconsistencies between the two, or it might confuse the hiring manager. You can also make them aesthetically match, too. Here’s one example: Like our ‘Penthouse’ template? This and more are free to download on our resume template and cover letter template pages. Although at the end of the day the content of your application holds the most weight, it still doesn’t hurt to catch the eye of whoever is vetting your documents. Little visual touches like this can be just the push you need to surpass an equally qualified candidate.

Лекція №13

Тема лекції: «Банкоблік»

План лекції 5. A bank account 6. Type of bank accounts 7. Different Kinds of Checking Accounts 8. What is a Checking Account 8.1. Checking Accounts and Banks 8.2. Checking Accounts and Money Supply Measurements 8.3. Checking Accounts In Use 8.4. Checking Account Features 8.5. Checking Accounts and Your Credit Score 8.6. Checking Account: How to Open One 8.7. Checking Account: What to Do if You Are Denied One

Література:

29. Virginia Evans, Jenny Dooley, Ketan C. Patel. Career Path Express publishing. Finance. – 2010, 120 c. 30. https://en.wikipedia.org/wiki/Bank_account 31. https://www.banking.org.za/consumer-information/conventional-banking/what-is-a- bank-account 32. https://www.valuepenguin.com/banking/what-is-a-checking-account 33. https://www.investopedia.com/terms/c/checkingaccount.asp

Зміст лекції 5. A bank account A bank account is a financial account maintained by a bank for a customer. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to the financial institution and from which the customer can make withdrawals. Alternatively, accounts may be loan accounts in which case the customer owes money to the financial institution. The financial transactions which have occurred within a given period of time on a bank account are reported to the customer on a bank statement and the balance of the accounts at any point in time is the financial position of the customer with the institution. The laws of each and every country specify the manner in which accounts may be opened and operated. They may specify, for example, who may open an account, how the signatories can identify themselves, deposit and withdrawal limits and many other matters.

6. Type of bank accounts Opening your own bank account is the beginning of effective financial freedom and management. However, it is imperative to select the correct account that suits your financial needs. Banks offer different accounts, so it is advisable to speak to one of the consultants for assistance. The different types of accounts offer unique services, charges and benefits; therefore it is important to select the account tailor made for you. 5. Cheque or Current Account – A cheque or current account usually requires a minimum qualifying salary. Deposits, withdrawals, debits and transfers are permitted, and there are numerous benefits available for this account. The interest rates are usually low and there is a nominal monthly fee, and you can use your debit or cheque card to make payments and purchases. 6. CreditCard – A credit account helps you expand your financial resources. The interest rates are relatively higher and you can also use this card to make payments and purchases. There is also a qualifying minimum salary and you usually don’t pay any transactional fees. 7. Savings Account – Is a deposit account that helps you save and provides you with security at an affordable interest rate. Some banks allow saving accounts to be used as transactional accounts. The banks need to be given notice when a large withdrawal needs to be made. 8. Mzansi Account – This type of account has been created for customers who deposit or withdraw money on an irregular basis and don’t have a regular income. The bank fees, interest rates and qualifying criteria are usually low. Withdrawals and deposits can be made with your debit card and your funds can be easily accessed.

7. Different Kinds of Checking Accounts While the main features of checking accounts are fairly similar across banks, we’ve included a breakdown of the different types available on the market. Restrictions and Type Best For… Features Drawbacks

 Lots of  Requires a Customers ATMs and branches minimum balance to who want reliable available Standard waive monthly fee brick-and-mortar  Many  Overdraft service also include online and ATM fees banking

Customers  Lower  Limited/no who don't need in- fees Online access to branch person bank  Higher locations services interest rates

 Higher  Higher spending and minimum balance Business withdrawal limits requirements and fees Business owners  Tools  Fees on for tracking excess transactions and business expenses cash deposits

Customers  More  Higher Premium with a large complimentary bank minimum balance amount in deposits services requirements and fees Restrictions and Type Best For… Features Drawbacks

 Some  Interest rates interest earned on are currently very low deposits

 Age limits or  Low/no enrollment requirements Qualifying monthly fees apply Student high school and  Good  Low college students introduction to spending and withdrawal personal finance limits

 Waived  Low monthly fees availability Qualifying Senior  Free  Often seniors checks and no-fee include unimportant money orders "perks"

 Useful Customers  Low for rebuilding credit Second- with bad banking availability  Low Chance histories who can't  Usually can't opening deposit get other accounts avoid monthly fee requirements 8. What is a Checking Account A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Also called demand accounts or transactional accounts, checking accounts are very liquid and can be accessed using checks, automated teller machines and electronic debits, among other methods. A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Checking accounts can include commercial or business accounts, student accounts and joint accounts, along with many other types of accounts that offer similar features. A commercial checking account is used by businesses and is the property of the business. The business’ officers and managers have signing authority on the account as authorized by the business’ governing documents. Some banks offer a special free checking account for college students that will remain free until they graduate. A joint checking account is one where two or more people, usually marital partners, are both able to write checks on the account. In exchange for liquidity, checking accounts typically do not offer a high interest rate, but if held at a chartered banking institution, funds are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per individual depositor, per insured bank. For accounts with large balances, however, banks often provide a service to “sweep” the checking account. This involves withdrawing most of the excess cash in the account and investing it in overnight interest-bearing funds. At the beginning of the next business day, the funds are deposited back into the checking account along with the interest earned overnight. 8.1. Checking Accounts and Banks Many banking institutions offer checking accounts for minimal fees and, traditionally, most large commercial banks use checking accounts as loss leaders. A loss leader is a marketing tool in which a company offers a product or several products below market value to attract consumers. The goal of most banks is to attract consumers with free or low-cost checking accounts, and then entice them to use more profitable features such as personal loans, mortgages and certificates of deposit. However, as alternative lenders such as fintech companies offer consumers an increasing number of loans, banks may have to revisit this strategy. For example, banks may decide to increase fees on checking accounts if they cannot sell enough profitable products to cover their losses.

8.2. Checking Accounts and Money Supply Measurements Because money held in checking accounts is so liquid, aggregate balances nationwide are used in the calculation of the M1 money supply. M1 is one measure of the money supply, and it includes the sum of all transaction deposits held at depository institutions, as well as currency held by the public. M2, another measure, includes all of the funds accounted for in M1, as well as funds in savings accounts, small-denomination time deposits and retail money market mutual fund shares.

8.3. Checking Accounts In Use Consumers can set up checking accounts at bank branches or through a financial institution's website. To deposit funds, account holders can use ATMs, direct deposit and over-the-counter deposits. To access their funds, they can write checks, use ATMs or use electronic debit or credit cards connected to their accounts. Advances in electronic banking have made checking accounts more convenient to use. Customers can now pay bills via electronic transfers, thus eliminating the need for writing and mailing paper checks. They can also set up automatic payments of routine monthly expenses, and they can use smartphone apps for making deposits or transfers.

8.4. Checking Account Features There are a number of features to consider before opening a checking account. Fees: There are things banks won't widely advertise to people who aren't reading the fine print, particularly in the realm of contingent fees like overdrafts. Overdraft Protection: If you write a check or make a purchase for more than you have in your checking account, your bank may cover the difference. This line of credit offered by the bank is called overdraft protection. What many banks don't tell customers is that they'll charge you for each transaction that causes your account to use an overdraft. For example, if you have a $50 account balance and you make purchases using your debit card of $25, $25 and $53, you will be charged the — usually hefty — overdraft fee for the purchase that overdrew your account, as well as for each subsequent purchase after you're in the red. But there's more. In the example above in which you made three purchases of $25, $25 and $53, you wouldn't just be charged a fee for the last purchase. Per the account holder agreement, many banks have provisions stating that in the event of an overdraft, transactions will be grouped in the order of their size, regardless of the order in which they occurred. This means the bank would group those transactions in the order of $53, $25, $25, charging a fee for each of the three transactions on the day you overdrew your account. Furthermore, if your account remains overdrawn, your bank may also charge you daily interest on the loan. There is a practical reason for clearing larger payments before smaller payments. Many important bills and debt payments, such as car and mortgage payments, are usually in large denominations. The rationale is that it is better to have those payments cleared first. However, such fees are also an extremely lucrative income generator for banks. You can avoid overdraft fees by opting out of overdraft coverage, choosing a checking account with no overdraft fees or by keeping money in a linked account. Service Charges: While banks are traditionally thought of as generating income from the interest they charge customers to borrow money, service charges were created as a way to generate income from accounts that weren't generating enough interest revenue to cover the bank's expenses. In today's computer-driven world, it costs a bank pretty much the same amount to maintain an account with a $10 balance as it does an account with a $2,000 balance. The difference is that while the larger account is earning enough interest for the bank to earn some income, the $10 account is costing the bank more than it's bringing in. The bank makes up for this shortfall by charging fees when customers fail to maintain a minimum balance, overdraw an account or write too many checks. Even with all those fees, there may still be a way to get out. If you're a customer of a large bank (not a small-town savings-and-loan branch), the best way to avoid paying non- recurring fees is to ask politely. Customer service reps at large banks are often authorized to overturn hundreds of dollars in charges if you merely explain the situation and ask them to cancel the charge. Just be aware that these "courtesy cancellations" are usually one-time deals. Direct Deposit: Direct deposit allows your employer to electronically deposit your paycheck into your bank account. Banks also benefit from this feature, as it gives them a steady flow of income to lend to customers. Because of this, many banks will give you free checking (i.e., no minimum balance or monthly maintenance fees) if you get direct deposit for your account. Electronic Funds Transfer: With an electronic funds transfer (EFT), also known as a wire transfer, it's possible to have the money directly transferred into your account without having to wait for a check to come in the mail. Most banks no longer charge to make an EFT. ATMs: ATMs make it convenient to access cash from your checking account or savings after hours, but it's important to be aware of fees that may be associated with their use. While you're typically in the clear when you use one of your own bank's ATMs, using an ATM from another bank could result in surcharges from both the bank that owns the ATM and your bank. However, surcharge-free ATMs are becoming increasingly popular. Cashless Banking: The debit card has become a staple for anyone who uses a checking account. It provides the ease of use and portability of a major credit card without the burden of high-interest credit card bills. Many banks offer zero-liability fraud protection for debit cards to help protect against identity theft if a card is lost or stolen. Interest: If you choose an interest-bearing checking account, be prepared to pay plenty of fees — particularly if you can’t maintain a minimum balance. According to the 2018 Bankrate checking account survey, the average minimum balance required to avoid a monthly fee on an interest checking account is $6,319, down 2.56% from the year before. The most common balance required to avoid fees on non-interest checking accounts is $1,500. This minimum amount is typically the combined total of all your accounts at the bank, including checking accounts, savings accounts and certificates of deposit. If your balance falls below the required minimum, you’ll have to pay a monthly service fee, which comes out to about $15 on average. And in today’s era of low interest rates, the average yield on these accounts is only around 0.34%. The best rate, according to Bankrate, is 2.02% as of February 2019. Only a handful of banks serve up free interest-bearing checking accounts with no strings attached. However, if you have a longstanding favorable relationship with your bank, you might get the fee on your interest-bearing checking account waived.

8.5. Checking Accounts and Your Credit Score A checking account can affect your credit score and credit report under certain circumstances, but most basic checking account activities, such as making deposits and withdrawals and writing checks do not have an impact. Unlike credit cards, closing dormant checking accounts in good standing also has no impact on your credit score or credit report. And oversights that result in checking accounts being overdrawn do not appear on your credit report as long as you take care of them in a timely manner. Some banks do a soft inquiry, or pull, of your credit report to find out if you have a decent track record handling money before they offer you a checking account. Soft pulls have no impact on your credit score. If you’re opening a checking account and applying for other financial products, such as home loans and credit cards, the bank is likely to do a hard inquiry to view your credit report and credit score. Hard pulls reflect on your credit report for up to 12 months and may drop your credit score by as many as 5 points. If you apply for checking account overdraft protection, the bank is likely to pull your credit since overdraft protection is a line of credit. If you fail to restore your account to a positive balance in a timely manner following an overdraft, you can expect the incident to be reported to the credit bureaus. If you don’t have overdraft protection and you overdraw your checking account and fail to restore it to a positive balance in a timely manner, the bank may turn your account over to a collection agency. In that case, that information also will be reported to the credit bureaus.

8.6. Checking Account: How to Open One In addition to credit reporting agencies, there are agencies that keep track of and report your banking history. The official name of this report card on your bank accounts is “consumer banking report.” Banks and credit unions look at this report before they will allow you to open a new account. The two main consumer reporting agencies that track the vast majority of bank accounts in the United State are ChexSystems and Early Warning System. When you apply for a new account, these agencies report whether you have ever bounced checks, refused to pay late fees or had accounts closed due to mismanagement. Chronically bouncing checks, not paying overdraft fees, committing fraud or having an account “closed for cause” can all result in a bank or credit union denying you a new account. Under the Fair Credit Reporting Act (FCRA), if your checking account was closed due to mismanagement, that information can appear in your consumer banking report for up to seven years. However, according to the American Bankers Association, most banks will not report you if you overdraw your account, provided you take care of it within a reasonable period. If there is nothing to report, that is good. In fact, that’s the best possible outcome. It means you have been a model account-holder.

8.7. Checking Account: What to Do if You Are Denied One If you haven't been a model account-holder, you can effectively be blacklisted from opening a checking account. Your best course of action is to avoid problems before they happen. Monitor your checking account and make sure you check the balance on a regular basis to avoid overdraft charges and fees. When they occur, make sure you have sufficient funds to pay them, the sooner the better. If you are denied, ask the bank or credit union to reconsider. Sometimes the opportunity to speak with a bank officer is all it takes to get the institution to change its mind. You can also try opening a savings account to build a relationship with the financial institution. Once you are able to get a checking account, it can be tied to this savings account to provide DIY overdraft protection. Even if you have legitimate blots on your record, it’s important to know how your data is tracked and what you can do to fix a mistake or repair a bad history. Under the FCRA, you have the right to ask the bank or credit union which of the two verification systems they use. If a problem is found, you will receive a disclosure notice, likely informing you that you will not be able to open an account and why. At that time, you can request a free copy of the report that was the basis for your denial. Federal law also allows you to request a free banking history report once per year per agency, at which time you can dispute incorrect information and ask that the record be corrected. The reporting services also must tell you how to dispute inaccurate information. To order your free banking history report from ChexSystems, click here. To get your free report from Early Warning System, click here. You can and should dispute incorrect information in your consumer banking report. It may seem obvious, but you should obtain your report, check it carefully and make sure it is accurate. If it is not, follow procedures to get it corrected and notify the bank or credit union. The Consumer Financial Protection Bureau (CFPB)offers sample letters to dispute inaccurate information in your history. When you contact one of the reporting agencies, be aware that it may try to sell you other products. You are not obligated to buy them, and declining them should not affect the outcome of your dispute. You may be tempted to pay a company to “repair” your credit or checking account history. But most credit repair companies are scams. Besides, if the negative information is accurate, the reporting services are not obligated to remove it for up to seven years. The only way it can be legitimately removed is if the bank or credit union that reported the information requests it. So you might be better served trying to repair your relationship with the institution on your own. Some banks offer cash-only pre-paid card accounts for people who can't get traditional accounts. After a period of good stewardship, you may qualify for a regular account. Many banks and credit unions offer other types of second-chance programs with restricted account access, higher bank fees and, in many cases, no debit card. If you are a candidate for a second-chance program, make sure the bank is insured by the FDIC. If it’s a credit union, it should be insured by the National Credit Union Administration (NCUA).

Лекція №14

Тема лекції: «Банківські послуги. Інвестиції»

План лекції

1. Different Types of Services | Bank Accounts 1.1. Individual Banking 1.2. Business Banking 1.3. Digital Banking 1.4. Loans 2. What is an Investment 3. Types Of Investments 3.1. Stocks 3.2. Bonds 3.3. Mutual funds 3.4. ETFs 4. Alternative investments

Література:

34. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 35. https://www.endeavour.bank/tools/your-banking-services 36. https://www.investopedia.com/terms/i/investment.asp 37. https://www.finra.org/investors/types-investments 38. https://localfirstbank.com/content/different-types-of-banking-services/

Зміст лекції 1. Different Types of Services | Bank Accounts 1.1. Individual Banking—Banks typically offer a variety of services to assist individuals in managing their finances, including:  Checking accounts  Savings accounts  Debit & credit cards  Insurance*  Wealth management

1.2. Business Banking—Most banks offer financial services for business owners who need to differentiate professional and personal finances. Different types of business banking services include:  Business loans  Checking accounts  Savings accounts  Debit and credit cards  Merchant services (credit card processing, reconciliation and reporting, check collection)  Treasury services (payroll services, deposit services, etc.)

1.3. Digital Banking—The ability to manage your finances online from your computer, tablet, or smartphone is becoming more and more important to consumers. Banks will typically offer digital banking services that include:  Online, mobile, and tablet banking  Mobile check deposit  Text alerts  eStatements  Online bill pay

1.4. Loans—Loans are a common banking service offered, and they come in all shapes and sizes. Some common types of loans that banks provide include:  Personal loans  Home equity loans  Home equity lines of credit  Home loans  Business loans

2. What is an Investment An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit. BREAKING DOWN Investment The term "investment" can refer to any mechanism used for generating future income. In the financial sense, this includes the purchase of bonds, stocks or real estate property. Additionally, a constructed building or other facility used to produce goods can be seen as an investment. The production of goods required to produce other goods may also be seen as investing. Taking an action in the hopes of raising future revenue can also be considered an investment. For example, when choosing to pursue additional education, the goal is often to increase knowledge and improve skills in the hopes of ultimately producing more income. Investment and Economic Growth Economic growth can be encouraged through the use of sound investments at the business level. When a company constructs or acquires a new piece of production equipment in order to raise the total output of goods within the facility, the increased production can cause the nation’s gross domestic product (GDP) to rise. This allows the economy to grow through increased production based on the previous equipment investment. Investment Banking An investment bank provides a variety of services designed to assist an individual or business in increasing associated wealth. This does not include traditional consumer banking. Instead, the institution focuses on investment vehicles such as trading and asset management. Financing options may also be provided for the purpose of assisting with the these services. Investments and Speculation Speculation is a separate activity from making an investment. Investing involves the purchase of assets with the intent of holding them for the long term, while speculation involves attempting to capitalize on market inefficiencies for short-term profit. Ownership is generally not a goal of speculators, while investors often look to build the number of assets in their portfolios over time. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing. Speculation is generally considered higher risk than traditional investing, though this can vary depending on the type of investment involved.

3. Types Of Investments There are many types of investments and investing styles to choose from. Mutual funds, ETFs, individual stocks and bonds, closed-end mutual funds, real estate, various alternative investments and owning all or part of a business are just a few examples.

3.1. Stocks Buying shares of stock gives the buyer the opportunity to participate in the company’s success via increases in the stock’s price and dividends that the company might declare. Shareholders have a claim on the company’s assets in the event of liquidation, but do not own the assets. Holders of common stock have voting rights at shareholders’ meetings and the right to receive dividends if they are declared. Holders of preferred stock don’t have voting rights, but do receive preference in terms of the payment of any dividends over common shareholders. They also have a higher claim on company assets than holders of common stock.

3.2. Bonds Bonds are debt instruments whereby an investor effectively is loaning money to a company or agency (the issuer) in exchange for periodic interest payments plus the return of the bond’s face amount when the bond matures. Bonds are issued by corporations, the federal government plus many states, municipalities and governmental agencies. A typical corporate bond might have a face value of $1,000 and pay interest semi- annually. Interest on these bonds are fully taxable, but interest on municipal bonds is exempt from federal taxes and may be exempt from state taxes for residents of the issuing state. Interest on Treasuries are taxed at the federal level only. Bonds can be purchased as new offerings or on the secondary market, just like stocks. A bond’s value can rise and fall based on a number of factors, the most important being the direction of interest rates. Bond prices move inversely with the direction of interest rates.

3.3. Mutual funds A mutual fund is a pooled investment vehicle managed by an investment manager that allows investors to have their money invested in stocks, bonds or other investment vehicles as stated in the fund’s prospectus. Mutual funds are valued at the end of trading day and any transactions to buy or sell shares are executed after the market close as well. Mutual funds can passively track stock or bond market indexes such as the S&P 500, the Barclay’s Aggregate Bond Index and many others. Other mutual funds are actively managed where the manager actively selects the stocks, bonds or other investments held by the fund. Actively managed mutual funds are generally more costly to own. A fund’s underlying expenses serve to reduce the net investment returns to the mutual fund shareholders. Mutual funds can make distributions in the form of dividends, interest and capital gains. These distributions will be taxable if held in a non-retirement account. Selling a mutual fund can result in a gain or loss on the investment, just as with individual stocks or bonds. Mutual funds allow small investors to instantly buy diversified exposure to a number of investment holdings within the fund’s investment objective. For instance, a foreign stock mutual might hold 50 or 100 or more different foreign stocks in the portfolio. An initial investment as low as $1,000 (or less in some cases) might allow an investor to own all the underlying holdings of the fund. Mutual funds are a great way for investors large and small to achieve a level of instant diversification.

3.4. ETFs ETFs or exchange-traded funds are like mutual funds in many respects, but are traded on the stock exchange during the trading day just like shares of stock. Unlike mutual funds which are valued at the end of each trading day, ETFs are valued constantly while the markets are open. Many ETFs track passive market indexes like the S&P 500, the Barclay’s Aggregate Bond Index, and the Russell 2000 index of small cap stocks and many others. In recent years, actively managed ETFs have come into being, as have so-called smart beta ETFs which create indexes based on “factors” such as quality, low volatility and momentum.

4. Alternative investments Beyond stocks, bonds, mutual funds and ETFs, there are many other ways to invest. We will discuss a few of these here. Real estate investments can be made by buying a commercial or residential property directly. Real estate investment trusts (REITs) pool investor’s money and purchase properties. REITS are traded like stocks. There are mutual funds and ETFs that invest in REITs as well. Hedge funds and private equity also fall into the category of alternative investments, although they are only open to those who meet the income and net worth requirements of being an accredited investor. Hedge funds may invest almost anywhere and may hold up better than conventional investment vehicles in turbulent markets. Private equity allows companies to raise capital without going public. There are also private real estate funds that offer shares to investors in a pool of properties. Often alternatives have restrictions in terms of how often investors can have access to their money. In recent years, alternative strategies have been introduced in mutual fund and ETF formats, allowing for lower minimum investments and great liquidity for investors. These vehicles are known as liquid alternatives.

Лекція №15

Тема лекції: «Строк погашення кредитів»

План лекції 1. What is Maturity 2. Maturity Date 3. Maturity of a Deposit 4. Bond 5. Derivatives 6. Foreign Exchang Література:

39. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 40. https://www.investopedia.com/terms/m/maturity.asp 41. http://www.financialdictionary.net/define/Maturity/ 42. http://www.thelearningcentres.com/adult-student/maturity-and-equivalency-credits 43. http://www2.gsu.edu/~econtv/maturity.pdf

Зміст лекції 1. What is Maturity Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot and forward transactions, interest rate and commodity swaps, options, loans and fixed income instruments such as bonds. In business and finance Maturity simply refers to the agreed date that the full amount on a loan or bond must be paid back to the lender. In other words when, if everything goes forward by the terms of the loan, this is the date that the final repayment is made. We call this full amount the principal amount and when it reaches the final date we say the loan has matured. Maturity does not always refer to a loan or bond though and can be applied to any other type of debt. The maturity of a credit card statement is the date at the end of the month when the minimum payment is due. Any type of debt, when it is due can be called the maturity date. The initial maturity date of a loan or other debt can change a number of times during the lifetime of the debt. This may be due to the addition of more interest, if the borrower defaults or has trouble paying off the debt, or if the borrower makes a big lump sum payment before the final payment date. There may also be times when the borrower refinances a loan several times. 2. Maturity Date Some financial instruments, such as deposits and loans, require repayment of principal and interest at maturity; others, such as foreign exchange transactions, provide for the delivery of a commodity. Still others, such as interest rate swaps, consist of a series of cash flows with the final one occurring at maturity.

3. Maturity of a Deposit The maturity of a deposit is the date on which the principal is returned to the investor. Interest is sometimes paid periodically during the lifetime of the deposit, or at maturity. Many interbank deposits are overnight, including most euro deposits, and a maturity of more than 12 months is rare.

4. Bond At the maturity of a fixed income investment such as a bond, the borrower is required to repay the full amount of the outstanding principal plus any applicable interest to the lender. Nonpayment at maturity may constitute default, which would negatively affect the issuer's credit rating. The maturity of an investment is a primary consideration for the investor, since it has to match his investment horizon. For example, a person who is saving money for the down payment on a home that he intends to purchase within a year would be ill-advised to invest in a five-year term deposit and should instead consider a money-market fund or a one-year term deposit.

5. Derivatives The term maturity can also be used with reference to derivative instruments such as options and warrants, but it's important to distinguish maturity from the expiration date. For an option, the expiration date is the last date on which an American-style option can be exercised, and the only date that a European-style option can be exercised; the maturity date is the date on which the underlying transaction settles if the option is exercised. The maturity or expiration date of a stock warrant is the last date that it can be exercised to purchase the underlying stock at the strike price. The maturity on an interest rate swap is the settlement date of the final set of cash flows.

6. Foreign Exchange The maturity date of a spot foreign exchange transaction is two business days, with the exception of U.S. dollar vs. Canadian dollar transactions, which settle on the next business day. On that date, company A pays currency A to company B and receives currency B in return. The maturity date on a foreign exchange forward or swap is the date on which the final exchange of currencies takes place; it can be anything longer than spot.

Лекція №16

Тема лекції: «Ризики купівельної спроможності»

План лекції

1. The Risk of Purchasing Power Loss 2. What is Inflation Risk 2.1. How it works 3. Why it Matters Література:

44. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 45. http://www.businessdictionary.com/definition/purchasing-power-risks.html 46. https://www.pragcap.com/the-risk-of-purchasing-power-loss/ 47. https://www.nasdaq.com/investing/glossary/p/purchasing-power-risk 48. https://investinganswers.com/inflation-risk-974

Зміст лекції

1. The Risk of Purchasing Power Loss Great chart here from Josh Brown today showing the real after-tax return from cash relative to other asset classes (see figure 1). It stresses how important it is to understand the role of cash in a portfolio and how damaging it can be to hold excessive cash levels at all times. One of the things I am trying to achieve with Orcam’s Portfolio Reviews is to communicate the concept of a “savings portfolio”. That is, most of us are not true “investors” in a secondary market (like a stock market) in the same sense that a private equity firm is when they actually front the money to help an operation grow. Most of us are just exchanging shares of stocks or bonds on a secondary market and the corporation actually has no involvement in any of this. So we’re not actually investing in Apple when we buy shares of AAPL on the exchange. We’re literally exchanging cash for stock with another PERSON and not the company. In other words, you’re simply allocating your savings. Why does that matter? Well, “investing” is often synonymous with high returns and high risks. True investors like private equity firms who invest with start-ups and actually seed capital are generally engaging in a form of asset allocation that is substantially more risky than what we do when we buy shares of GE on the stock exchanges. Most of us spend our lives making real investments in ourselves. We spend huge amounts of time and resources becoming educated and working on perfecting a craft. And what we save from our primary source of income should be allocated in a highly prudent manner. This doesn’t mean we should never “invest”. It just means we have to stop looking at our portfolios as though they’re a fragment of our lives and begin to think of the broader role that a savings portfolio plays in our lives. And when you recognize that your repository of income is literally your savings portfolio we realize that most of us shouldn’t be piling 100% of our savings into some fancy sounding strategy or assuming that we’re “diversified” by owning stocks alone. No, we should take a more all-encompassing view of our overall life portfolio and understand that our portfolios are a repository for our savings that need to grow, but also be protected. The real goal for your life portfolio is to maximize the return from your real investments (like your primary form of work) and take the savings repository and allocate it in a manner that helps you protect against two primary risks: 1) The risk of purchasing power loss. 2) The risk of permanent loss. You should construct portfolios that generate a moderately high risk adjusted return that protects you from these two risks. You don’t need to “beat the market”. In fact, it’s inappropriate for almost all of us to own 100% equity portfolios unless you’re willing to expose your savings to that rollercoaster ride. We’re not competing with the S&P 500. We’re competing against inflation and the risk of permanent loss. Personally, I’d rather grind it out at work all day and know that the savings I generate from that primary income source is not creating even more stress and uncertainty in my life. That’s the essence of the savings portfolio concept.

2. What is Inflation Risk Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.

2.1. How it works For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds. Some securities attempt to address this risk by adjusting their cash flows for inflation to prevent changes in purchasing power. Treasury Inflation Protected Securities (TIPS) are perhaps the most popular of these securities. They adjust their coupon and principal payments for changes in the consumer price index, thereby giving the investor a guaranteed real return. Some securities inadvertently provide some load9-risk protection. For example, variable-rate securities provide some protection because their cash flows to the holder (interest payments, dividends, etc.) are based on indices such as the prime rate that are directly or indirectly affected by inflation rates. Convertible bonds also offer some protection because they sometimes trade like bonds and sometimes trade like stocks. Their correlation with stockprices, which are affected by changes in inflation, means convertible bonds provide a little inflation protection.

3. Why it Matters Although the record inflation of the 1970s is history, inflation risk is still a common worry for income investors. Inflation causes money to lose value, and any investment that involves cashflows over time is exposed to this inflation risk. The ramifications of this can be serious: The investor earns a lower return that he or she originally expected, in some cases causing the investor to withdraw some of a portfolio's principal if he or she is dependent on it for income. It is important to note that inflation risk isn't the risk that there will be inflation, it is the risk that inflation will be higher than expected. This is one reason investors and analysts speculate considerably about inflation rates and study indicators such as the yield curve to get a feel for where inflation rates are headed. For example, many economists believe that a steep normal yield curve means investors expect higher future inflation and a sharply inverted yield curvemeans investors expect lower inflation.

Лекція №17

Тема лекції: «Маркетинг»

План лекції

1. What is marketing? 2. Types of Marketing 3. Marketing and Advertising 4. The 4 Ps of Marketing 4.1. Product 4.2. Price 4.3. Place 4.4. Promotion 5. How Marketing Is Defined

Література:

49. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 50. https://heidicohen.com/marketing-definition/ 51. https://heidicohen.com/marketing-definition/ 52. https://blog.hubspot.com/marketing/what-is-marketing 53. http://www.businessdictionary.com/definition/marketing.html 54. https://www.thebalancesmb.com/what-is-marketing-2296057

Зміст лекції

1. What is marketing? The management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P's of marketing: (1) identification, selection and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer's place, and (4) development and implementation of a promotional strategy. For example, new Apple products are developed to include improved applications and systems, are set at different prices depending on how much capability the customer desires, and are sold in places where other Apple products are sold. In order to promote the device, the company featured its debut at tech events and is highly advertised on the web and on television. Marketing is based on thinking about the business in terms of customer needs and their satisfaction. Marketing differs from selling because (in the words of Harvard Business School's retired professor of marketing Theodore C. Levitt) "Selling concerns itself with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does not, as marketing invariable does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse and satisfy customer needs." In other words, marketing has less to do with getting customers to pay for your product as it does developing a demand for that product and fulfilling the customer's needs.

2. Types of Marketing Where your marketing campaigns live depends entirely on where your customers spend their time. It's up to you to conduct market research that determines which types of marketing - and which mix of tools within each type -- is best for building your brand. Here are several types of marketing that are relevant today, some of which have stood the test of time:  Internet marketing: Inspired by an Excedrin product campaign that took place online, the very idea of having a presence on the internet for business reasons is a type of marketing in and of itself.  Search engine optimization: Abbreviated "SEO," this is the process of optimizing content on a website so that it appears in search engine results. It's used by marketers to attract people who perform searches that imply they're interested in learning about a particular industry.  Blog marketing: Blogs are no longer exclusive to the individual writer. Brands now publish blogs to write about their industry and nurture the interest of potential customers who browse the internet for information.  Social media marketing: Businesses can use Facebook, Instagram, Twitter, LinkedIn, and similar social networks to create impressions on their audience over time.  Print marketing: As newspapers and magazines get better at understanding who subscribes to their print material, businesses continue to sponsor articles, photography, and similar content in the publications their customers are reading.  Search engine marketing: This type of marketing is a bit different than SEO, which is described above. Businesses can now pay a search engine to place links on pages of its index that get high exposure to their audience. (It's a concept called "pay-per-click" -- I'll show you an example of this in the next section).  Video marketing: While there were once just commercials, marketers now put money into creating and publishing all kinds of videos that entertain and educate their core customers.

3. Marketing and Advertising If marketing is a wheel, advertising is one spoke of that wheel. Marketing entails product development, market research, product distribution, sales strategy, public relations, and customer support. Marketing is necessary in all stages of a business's selling journey, and it can use numerous platforms, social media channels, and teams within their organization to identify their audience, communicate to it, amplify its voice, and build brand loyalty over time. On the other hand, advertising is just one component of marketing. It's a strategic effort, usually paid for, to spread awareness of a product or service as a part of the more holistic goals outlined above. Put simply, it's not the only method used by marketers to sell a product. Here's an example (keep reading, there's a quiz at the end of it) ... Let's say a business is rolling out a brand new product and wants to create a campaign promoting that product to its customer base. This company's channels of choice are Facebook, Instagram, Google, and its company website. It uses all of these spaces to support its various campaigns every quarter and generate leads through those campaigns. To broadcast its new product launch, it publishes a downloadable product guide to its website, posts a video to Instagram demonstrating its new product, and invests in a series of sponsored search results on Google directing traffic to a new product page on its website. Now, which of the above decisions were marketing, and which were advertising. The advertising took place on Instagram and Google. Instagram generally isn't an advertising channel, but when used for branding, you can develop a base of followers that's primed for a gentle product announcement every now and again. Google was definitely used for advertising in this example; the company paid for space on Google -- a program known as pay-per-click (PPC) -- on which to drive traffic to a specific page focused on its product. A classic online ad. Where did the marketing take place? This was a bit of a trick question, as the marketing was the entire process. By aligning Instagram, Google, and its own website around a customer-focused initiative, the company ran a three-part marketing campaign that identified its audience, created a message for that audience, and delivered it across the industry to maximize its impact.

4. The 4 Ps of Marketing In the 1960's, E Jerome McCarthy came up with the 4 Ps of marketing: product, price, place, promotion. Essentially, these 4 Ps explain how marketing interacts with each stage of the business.

4.1. Product Let's say you come up with an idea for a product you want your business to sell. What's next? You probably won't be successful if you just start selling it. Instead, you need your marketing team to do market research and answer some critical questions: Who's your target audience? Is there market fit for this product? What messaging will increase product sales, and on which platforms? How should your product developers modify the product to increase likelihood of success? What do focus groups think of the product, and what questions or hesitations do they have? Marketers use the answers to these questions to help businesses understand the demand for the product and increase product quality by mentioning concerns stemming from focus group or survey participants.

4.2. Price Your marketing team will check out competitors' product prices, or use focus groups and surveys, to estimate how much your ideal customer is willing to pay. Price it too high, and you'll lose out on a solid customer base. Price it too low, and you might lose more money than you gain. Fortunately, marketers can use industry research and consumer analysis to gauge a good price range.

4.3. Place It's critical that your marketing department uses their understanding and analysis of your business's consumers to offer suggestions for how and where to sell your product. Perhaps they believe an ecommerce site works better than a retail location, or vice versa. Or, maybe they can offer insights into which locations would be most viable to sell your product, either nationally and internationally. 4.4. Promotion This P is likely the one you expected from the get-go: promotion entails any online or print advertisement, event, or discount your marketing team creates to increase awareness and interest in your product, and, ultimately, lead to more sales. During this stage, you'll likely see methods like public relations campaigns, advertisements, or social media promotions. Hopefully, our definition and the four Ps help you understand marketing's purpose and how to define it. Marketing intersects with all areas of a business, so it's important you understand how to use marketing to increase your business's efficiency and success.

5. How Marketing Is Defined On the first day in many Marketing 101 courses, professors often define marketing as, "all the processes involved in getting a product or service from the manufacturer or seller to the ultimate consumer." It includes creating the product or service concept, identifying who is likely to purchase it, promoting it and moving it through the proper selling channels. Business consultant Evan Carmichael does a great job of identifying the three main purposes of marketing: 1. Capture the attention of a target market. 2. Facilitate the prospect's purchasing decision. 3. Provide the customer with a specific, low-risk and easy-to-take action. With these purposes in mind, coupons, sales and even merchandising, or how products are displayed, are part of the marketing process. Since marketing is the cornerstone of every business, the overall objective is to sell more products or services.

Лекція №18

Тема лекції: «Фінансовий менеджер. За що фінансовий менеджер несе відповідальність?»

План лекції

1. What is a Financial Manager and what does he do? 2. Financial Manager Responsibilities and Requirements 3. Salary and Working hours 4. What to expect from this job 5. Qualifications 6. Skills and Work experience 7. Employers 8. Professional development

Література:

55. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 56. https://www.careerexplorer.com/careers/financial-manager/ 57. https://www.accountingtools.com/articles/2017/5/14/finance-manager-job-description 58. https://globalfundforchildren.org/wp-content/uploads/2018/02/Finance-Manager.pdf 59. https://www.betterteam.com/financial-manager-job-description 60. https://www.prospects.ac.uk/job-profiles/financial-manager

Зміст лекції

1. What is a Financial Manager and what does he do? Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization. Financial managers work in many places, including banks and insurance companies. Financial managers increasingly assist executives in making decisions that affect the organization, a task for which they need analytical ability and excellent communication skills. The role of the financial manager, particularly in business, is changing in response to technological advances that have significantly reduced the amount of time it takes to produce financial reports. Financial managers’ main responsibility used to be monitoring a company’s finances, but they now do more data analysis and advise senior managers on ideas to maximize profits. They often work on teams, acting as business advisors to top executives. Financial managers typically do the following:  Prepare financial statements, business activity reports, and forecasts  Monitor financial details to ensure that legal requirements are met  Supervise employees who do financial reporting and budgeting  Review company financial reports and seek ways to reduce costs  Analyze market trends to find opportunities for expansion or for acquiring other companies  Help management make financial decisions Financial managers also do tasks that are specific to their organization or industry. For example, government financial managers must be experts on government appropriations and budgeting processes, and healthcare financial managers must know about issues in healthcare finance. Moreover, financial managers must be aware of special tax laws and regulations that affect their industry. The following are examples of types of financial managers:  Controllers direct the preparation of financial reports that summarize and forecast the organization's financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Controllers also are in charge of preparing special reports required by governmental agencies that regulate businesses. Often, controllers oversee the accounting, audit, and budget departments.  Treasurers and finance officers direct their organization's budgets to meet its financial goals. They oversee the investment of funds. They carry out strategies to raise capital (such as issuing stocks or bonds) to support the firm's expansion. They also develop financial plans for mergers (two companies joining together) and acquisitions (one company buying another).  Credit managers oversee the firm's credit business. They set credit-rating criteria, determine credit ceilings, and monitor the collections of past-due accounts.  Cash managers monitor and control the flow of cash that comes in and goes out of the company to meet the company's business and investment needs. For example, they must project cash flow (amounts coming in and going out) to determine whether the company will not have enough cash (and will need a loan), or will have more cash than needed (and can invest some of its money).  Risk managers control financial risk by using hedging and other strategies to limit or offset the probability of a financial loss or a company’s exposure to financial uncertainty. Among the risks they try to limit are those due to currency or commodity price changes.  Insurance managers decide how best to limit a company’s losses by obtaining insurance against risks such as the need to make disability payments for an employee who gets hurt on the job, and any costs imposed by a lawsuit against the company.

2. Financial Manager Responsibilities and Requirements Financial Manager Responsibilities:  Prepare business activity reports, financial statements, and forecasts.  Make sure financial legal requirements are met.  Developing financial reporting systems.  Find ways to reduce or maintain costs by studying financial reports and business process.  Analyze market trends to discover business opportunities and maximize profits.  Aid management in financial decisions.  Maintain up to date financial system knowledge. Financial Manager Requirements:  FP&A, investment banking, business administration, or management consulting experience.  Bachelor's degree in finance or accounting.  Strong Excel skills.  Excellent ability to problem solve along with solid analytical skills, understanding of business process and systems optimization.  Comfortable interacting with all levels of management in multiple areas.  Strong knowledge of financial reporting.  Ability to review data and make relevant management decisions.  Strong financial system and business administration understanding.

3. Salary and Working hours  You can expect starting salaries in the region of £24,000 to £35,000. Average starting salaries in the banking and finance sector can be as high as £35,000, rising to £45,000 in the investment banking sector.  Typical salaries for newly qualified accountants in public service and not- for-profit agencies are between £35,000 and £40,000.  Salaries for experienced financial managers (ten years plus) in commerce and industry can range from £65,000 to £100,000+. Some companies may pay higher salaries while others offer a lower basic pay with additional high bonuses. Salaries vary widely according to the type, sector, size and location of the employing organisation. The highest salaries tend to be in London and the surrounding areas. The private sector, most notably the banking and capital markets sector and particularly organisations based in the City, pays more than the public sector. Income figures are intended as a guide only. Working hours are generally 9am to 5pm, five days a week, with some flexibility possible. However, longer hours may be required depending on current deadlines and workload. Jobs within the City in particular can be highly pressured with long working hours. During the early years of your career, if undertaking professional study, you'll need to factor extra working hours into your official working day.

4. What to expect from this job  It's common for employers to provide financial support for professional study, as well as study leave.  Jobs are available in most areas of the country, with the majority being in or near large towns and cities.  Self-employment is possible. Finance professionals sometimes work as consultants, but usually only after gaining significant experience.  Career breaks are possible but, as with any profession, if you're considering re- entry you must keep up to date with developments.  Travel for work is likely, particularly if the company operates from a number of different sites, with overnight stays or periods away from home sometimes required.  Opportunities to travel and work abroad will depend on the size and nature of the organisation, its clients or customers, and whether it has overseas sites or international links.

5. Qualifications Although this area of work is open to all graduates, the following subjects may be particularly helpful and may entitle you to exemptions from some professional examinations:  accountancy and finance  business  economics  management  mathematics  statistics. A relevant postgraduate course may be useful, but isn't essential. In certain niche areas, specialised knowledge gained through a postgraduate programme may give you a competitive advantage. Graduate schemes in finance and related areas almost always require further study for professional qualifications. Search postgraduate courses in financial management. Entry into the profession is possible with A-levels (or equivalent) or an HND or HNC, generally by studying with an institution such as the:  Association of Chartered Certified Accountants (ACCA)  Institute of Financial Accountants (IFA) You can then proceed to professional accountancy training and work your way up to a management position. Gaining membership with a professional organisation is useful as it shows your interest and commitment to the sector. Registration with professional bodies is open to individuals with A-levels (or equivalent) or above, such as an HND or HNC, so you don't have to wait until you've graduated to join. A variety of organisations offering finance graduate schemes, as well as accountancy professional bodies, hold presentations on university campuses and have stands at careers fairs, where you can talk to representatives and recent graduate trainees in order to get an insight into the nature of the work and tips on what helped them to succeed.

6. Skills and Work experience You'll need to show evidence of the following:  commercial and business awareness  excellent communication and presentation skills  an analytical approach to work  high numeracy and sound technical skills  problem-solving skills and initiative  negotiation skills and the ability to influence others  strong attention to detail and an investigative nature  the ability to balance the demands of work with study commitments  good time management skills and the ability to prioritise  the ability to work as part of a team and to build strong working relationships  the capacity to make quick but rational decisions  the potential to lead and motivate others  good IT skills. Relevant work experience can be valuable and there are many opportunities available. Some employers run vacation placements or short work experience taster courses. You should apply as early as possible as competition can be strong. Many of the professional accountancy bodies also publish details of available traineeships. Many employers offer industrial placement years, which can be taken as part of a sandwich degree. Your university careers service and course tutors should be able to offer you support with finding these. It's worth approaching organisations directly for work experience, even if they haven't advertised placements. 7. Employers Financial managers work in a variety of organisations, throughout all sectors of business, industry and commerce. Some may begin their training in firms of chartered or certified accountants, while others train in the public sector in a range of settings, such as:  charities  health authorities  local government  other public organisations  universities and colleges. Other financial managers work in a range of industrial and commercial companies, including:  banks, building societies and insurance companies  fast-moving consumer goods (FMCG) industries  IT companies  manufacturing and service industries  media  public utilities  retail. Financial managers may be employed by small to medium-sized enterprises (SMEs), where they may be responsible for a wider range of activities. Self-employment is also possible, as a consultant providing financial advice to a range of businesses. This is usually only possible with a significant amount of experience. Look for job vacancies at:  ACCA - Careers advice  Chartered Accountants Ireland  CIMA MyJobs  CIPFA Recruitment Services  exec-appointments  ICAEW Jobs  Institute of Chartered Accountants of Scotland (ICAS) Appointments are increasingly being handled by recruitment agencies, which frequently advertise in professional journals and newspapers. When searching for vacancies, look at the job description rather than just the job title as this can vary across companies. The finance and accountancy sector is influenced by the economic climate and so when there is a period of economic downturn it will have a detrimental effect on the sector. This can mean that firms reduce their levels of recruitment and competition for jobs can be fierce. In these situations it may be useful to consider jobs with smaller accountancy firms and other SMEs, rather than focusing on the large organisations that offer graduate schemes and attract a lot of applications

8. Professional development Most financial managers are qualified (or partly qualified) accountants. To become qualified, you need to pass (or be exempt from) a series of professional examinations, and undergo a period of practical training. Professional accountancy training is mostly on the job, and you will study for your examinations on a part-time basis. Employers usually support this activity and may help to fund the studies. You may follow a structured graduate training scheme, which will give exposure to a range of different functions. This will enable you to move into a financial management role at a later date. You may also be asked to complete a training log or portfolio to show evidence of your training and experience. Structured graduate training schemes are offered in large companies and in the public sector, although some financial managers gain their initial training in accountancy firms. There are various chartered accountancy bodies in the UK which offer professional examinations. Check their websites for details of syllabuses, practical experience requirements and exemptions from professional examinations. Relevant bodies include:  Association of Chartered Certified Accountants (ACCA)  Chartered Accountants Ireland  Chartered Institute of Management Accountants (CIMA)  Chartered Institute of Public Finance & Accountancy (CIPFA)  Institute of Chartered Accountants in England and Wales (ICAEW)  Institute of Chartered Accountants of Scotland (ICAS) Which professional qualification you'll study towards is likely to be determined by your employer, so it's important to find out in advance which qualifications they support as well as the level of financial support, tuition and study leave they provide.

Лекція №19

Тема лекції: «Фінансовий план організації. Золоті правила»

План лекції

1. Objectives of Financial Planning for Organizations 2. Importance and Value of Financial Planning 3. Components of a Financial Plan 4. The Organization and Its People and Market Opportunities 5. Financial Details

Література:

61. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 62. https://www.rfsuny.org/media/rfsuny/documents/reports--publications/operating- plan/final_financial_plan_2010-11.pdf 63. https://www.academia.edu/10218853/THE_ROLE_OF_STRATEGIC_FINANCE_PL ANNING_ON_ORGANIZATION_PERFORMANCE- 64. https://managementstudyguide.com/financial-planning.htm 65. https://yourbusiness.azcentral.com/examples-financial-plans-notforprofit- organizations-27895.html 66. https://www.pacer.org/publications/ParentCenterNetwork/assets/webinars/web-PPT- Financial-Planning-for-Sustainable-Nonprofits.pdf 67. https://www.invensis.net/blog/finance-and-accounting/importance-of-financial- planning-for-organizations/ 68. https://yourbusiness.azcentral.com/examples-financial-plans-notforprofit- organizations-27895.html

Зміст лекції

1. Objectives of Financial Planning for Organizations  Availability of Sufficient Funds: To make sure that sufficient funds are available for meeting day-to-day expenses, purchasing long term assets, and dealing with unforeseen costs. Planning is not only done to make sure that finance is available in a timely manner, but also that the company knows exactly where to raise the money from when it is needed.  Manage Cash Flow: It is not just a shortage of cash that can cause problems; excess cash can be equally difficult to manage. If there is a shortage of funds, it can be inferred with certainty that the company will find it difficult to function. But having excess cash and not using it in an optimal manner is a huge wastage of resources. When the company is flush with funds, they should be looking for ways to invest it wisely and ensure that they have expansion plans in place and are thinking of new ventures.

2. Importance and Value of Financial Planning Financial planning adds tremendous value to the company. In fact, without it no enterprise can function efficiently. Below are some of the reasons why.  The company has to plan to make sure they accumulate just the right amount of funds. Too little money is bad as well as too much of it. Planning helps in gathering, storing and using just the right amount of funds.  How are these funds going to be raised? Is the company going to issue shares, will they issue debt, or will they take loans from banks? Once this decision is made, the company has to decide to whom they want to issue the shares and the debt, and which banks they want to approach for loans. Since most companies use a mix of all these avenues to raise funds, planning becomes extensive and complicated.  At any given point in time, a company might have two, three or maybe more investment proposals. They need to decide which among them is the most affordable, the most profitable and has the highest chance of success. Then they can invest in those proposals.  Every enterprise needs a sizeable quantum of funds for day-to-day operations, and the larger the enterprise, the more the money needed. Finance has to continuously flow into the business so that operations proceed unhindered, and at no point of time is there a shortage of raw materials or a stoppage in production.  Financial planning is also the base for financial control. Unless the finance teams know how much money has been allocated and to which activity, they cannot know if they are going over-budget or are under-budget. If remedial action needs to be taken, they will have a base for taking corrective measures.  Every business has to face unforeseen expenses, crisis situations and events over which they have no control. Emergency funds are needed to tide over these tough phases. One of the roles of financial planning is to make sure that there are enough reserves for such occasions, and that these reserves are continuously renewed as and when they get depleted.  A company has to constantly decide which department gets how much money. Every department like production, sales, marketing etc, would have their own budget of how much they need. But should they be given the funds they are asking for? There will be times when the marketing department might need more and there will be times when the HR department might need more. Who gets how much funds and at what point in time is a constant activity for the financial planners.  Financial planning also ensures consistency of goals, aligning the growth objectives of the enterprise with its financial requirements. For instance, aiming for a higher sales target may require eating into the profit margin of products and services by having to reduce prices.  Financial planning also supports the strategic growth of the organization, by taking into account risks, capital budgeting estimates, and opportunities in new markets. Financial planning is usually executed by following a process with the following steps:  Sales forecasting  Projection of the assets required to support sales  Projection of funds that are generated within the organization  Projection of external funds that will be required  Identifying the means to raise the funds  Assessing the effect of plans on financial ratios and stock price Financial planning is a year-round activity that requires the support of accurate financial reporting and analysis. Not only does it need to be done constantly, but the outcomes of those plans also need to be monitored. In case they are not working out, new plans need to be drawn up or the old ones need to be modified. The larger the enterprise, the larger the size of the team working on financial planning and the greater the skill needed. Financial planning starts before the commencement of a venture and carries on throughout its lifetime. It is a vital activity for all businesses.

3. Components of a Financial Plan While all not-for-profit organizations are different, their financial plans are usually organized the same way. The typical sections include: 1. Cover page 2. Table of Contents 3. Executive Summary 4. The Organization's Structure and Key People 5. Market Opportunities or Competitive Analysis 6. Overview of Programs and Services Offered 7. Contingencies 8. Financial Details The cover page and table of contents are the same as any multi-page document. The executive summary does as its name suggests, summarizing the contents of the plan in a few paragraphs for busy people like executives. The executive summary is usually written last because it highlights the most important aspect of the financial plan, like how much money you expect to generate and the major programs and services to be developed.

4. The Organization and Its People and Market Opportunities The best laid plans of any organization will come to nothing if you don't have the right people on board. This section of your financial plan should briefly describe the key people in the organization and the skills and expertise they bring with them. This begins with your board of directors, followed by the executive director and then the key management positions, including those responsible for fundraising and finance. Depending on the structure of your not-for-profit, this section can also include a council of elders; leaders in the community who will be helping; an advisory council, key committee volunteers, an operations committee and a strategic planning committee. When listing market opportunities and writing a competitive analysis, a common approach is to use a SWOT analysis – Strengths, Weaknesses, Opportunities and Threats. This should include other organizations providing similar services or fundraising in the same area, at the same times of year, or those that are using similar fundraising techniques. As an example, if you have decided that a charity run will be a good fundraising event, you should explain why that should be the case, such as a renewed interest in running in your community. If other organizations are also doing charity runs, you should explain how your run will be different, from a perspective of both strengths and weaknesses. If you are applying for grants, those should be included in this section. A SWOT analysis of your grant applications could include how likely you will be able to win them, as well as increases or decreases in grant amounts.

5. Financial Details The last section of a financial plan lists all the nuts and bolts of your finances, your expected revenue and the details of your expenses. Many organizations put this information into a spreadsheet and then copy and paste it into the document. The revenue section would typically include:  Anticipated fundraising amounts  Annual donor contributions  Investment revenue  Grants The expenses section would typically include:  Salaries  Consultant fees  Printing and office expenses  Travel costs  Conference fees  Detailed costs of each program  Gifts to donors and volunteers Many organizations will list more than a $1 dollar amount for both revenue and expenses. For example, if your organization has been around for more than a year, you could list last year's revenue and expenses in one column; your best-case scenario amounts in a second column; and your most likely amounts in a third column.

Лекція №20

Тема лекції: «Американская фондовая биржа (ASE). Акции Корпорации»

План лекції

1. What Is the American Stock Exchange (AMEX)? 2. History of the American Stock Exchange (AMEX) 3. How it works (Example) 4. Floor Brokers 5. Specialists 6. American Stock Exchange : Company Listings

Література:

69. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 70. https://www.investopedia.com/terms/a/amex.asp 71. https://www.nasdaq.com/investing/glossary/a/american-stock-exchange 72. https://investinganswers.com/financial-dictionary/stock-market/american-stock- exchange-amex-852 73. https://www.advfn.com/amex/americanstockexchange.asp

Зміст лекції

1. What Is the American Stock Exchange (AMEX)? The American Stock Exchange (AMEX) was once the third-largest stock exchange in the United States, as measured by trading volume. The exchange, at its height, handled about 10% of all securities traded in the U.S. Today, the AMEX is known as the NYSE American. In 2008, NYSE Euronext acquired the AMEX. In the subsequent years, it also became known as NYSE Amex Equities and NYSE MKT. The AMEX developed a reputation over time as an exchange that introduced and traded new products and asset classes. For example, it launched its optionsmarket in 1975. Options are a type of derivative security. They are contracts that grant the holder the right to buy or sell an asset at a set price on or before a certain date, without the obligation to do so. When the AMEX launched its options market, it also distributed educational materials to help educate investors as to the potential benefits and risks. The AMEX used to be a larger competitor of the New York Stock Exchange (NYSE), but over time the Nasdaq filled that role. In 1993, the AMEX introduced the first exchange-traded fund (ETF). ETFs, which are now a popular investment, are a type of security that tracks an index or a basket of assets. They are much like mutual funds, but differ in that they trade like stocks on an exchange. Most trading on the NYSE American is in small-cap stocks. It operates as a fully- electronic exchange. 2. History of the American Stock Exchange (AMEX) The AMEX dates back to the late 18th century when the American trading market was still developing. At that time, without a formalized exchange, stockbrokers would meet in coffeehouses and on the street to trade securities. For this reason, the AMEX became known at one time as the New York Curb Exchange.  The American Stock Exchange (AMEX) was once the third-largest stock exchange in the U.S.  NYSE Euronext acquired the AMEX in 2008 and today it is known as the NYSE American.  The majority of trading on the NYSE American is in small-cap stocks. The traders who originally met in the streets of New York became known as curbstone brokers. They specialized in trading stocks of emerging companies. At the time, many of these emerging businesses were in industries such as railroads, oil and textiles, while those industries were still getting off the ground. In the 19th century, this type of curbside trading was informal and quite disorganized. In 1908, the New York Curb Market Agency was established in order to bring rules and regulations to trading practices. In 1929, the New York Curb Market became the New York Curb Exchange. It had a formalized trading floor and a set of rules and regulations. In the 1950s, more and more emerging businesses began trading their stocks on the New York Curb Exchange. The value of companies listed on the exchange almost doubled between 1950 and 1960, going from $12 billion to $23 billion during that time. The New York Curb Exchange changed its name to the American Stock Exchange in 1953.

3. How it works (Example) Though not as large as the New York Stock Exchange (NYSE), the AMEX is a large exchange that serves as a market for equities, a variety of options and other derivatives, American Depository Receipts (ADRs), exchange-traded funds (ETFs), and other financial instruments. The first ETFs traded on the AMEX in 1993. The AMEX was called the New York Curb Market until 1953 because it started on the street near the NYSE. It was originally established to trade stocks that did not meet the NYSE's stringent listing requirements. In 1998, the National Association of Securities Dealers (NASD) purchased the AMEX and operates it separately from its other exchange, the Nasdaq. Trading on the AMEX When an investor wishes to buy or sell a security listed on the AMEX, he or she places a trade by calling her broker or going to her online trading account -- the same as trading on the NYSE or Nasdaq. The order goes to a broker, who can get the order to the exchange several ways--through a regional exchange, electronic communications network, or directly to the AMEX. Either way, the order eventually reaches the floor of the AMEX where floor brokers and specialists handle transactions.

4. Floor Brokers Floor brokers execute buy and sell orders on behalf of their clients or the firms they work for. If you wanted to sell some shares of Company XYZ, for example, you might call your broker down the street and place a sell order. Your broker might in turn route the order to one of his firm's floor brokers who are actually on the floor of the exchange. The floor brokerapproaches the Company XYZ specialist (see below) and executes the trade. Some floor brokers are independent, meaning that they are not employed by any brokerage firm, but provide services to brokerage firms (i.e., they work for themselves). In either case, floor brokers are the people doing most of the shouting on the trading floor. Being a floor broker requires owning a seat on the AMEX. A seat allows a person to trade on the floor of the exchange, either as an agent for someone else or for their own personal accounts (in which case, the person is called a floor trader).

5. Specialists Although most buy and sell orders are matched electronically, specialists also match up brokers' buy and sell orders, and each specialist spirsalizes in certain listed securities. A specialist has four roles. First, he is the principal; that is, he is the primary party to a transaction and his customers' interests come before his own. He must be willing to buy and sell out of his own inventory to steady the market if there is a buying frenzy or a huge sell- off. Second, he is an agent; that is he places orders on behalf of his clients and ensures that they get the best price as fast as possible. Third, he is a catalyst; that is, he reports the prices of his securities in a timely manner and he sets the opening bid prices of his securities every morning based on supply and demand. Fourth, the specialist is an auctioneer; that is, he must disclose what the best buying and selling prices are and ensure that orders are transacted properly. The AMEX does not employ specialists. Rather, each specialist works for one of a handful of companies. The AMEX is registered as a self-regulatory organization with the Securities and Exchange Commission (SEC), the SEC and a variety of federal laws require the AMEX to have rules that prevent fraud, manipulative practices, and ensure fair trading activity. The AMEX also must enforce its rules, SEC regulations, and any other laws that affect its business or trading activity.

74. American Stock Exchange : Company Listings The American Stock Exchange is the third largest stock exchange in the U.S. after the NYSE and the NASDAQ, and handles approximately 10% of all American trades. The American Stock Exchange lists companies from all different industries and of all different sizes. However, the exchange is known as having the least strict listing requirements among the three top American exchanges, which results in many small companies joining the exchange. Once a major competitor of the NYSE, the American Stock Exchange is now mostly known for trading in small cap stocks, options, and exchange traded funds. The exchange is owned by NASD (National Association of Securities Dealers), but operated as a separate exchange from the NASDAQ. As an auction market, the AMEX conducts its business on a trading floor through brokers and specialists. Each security traded on the exchange is handled by a specialist whose job it is to bring buyers and sellers together, and ensure that a fair market price is obtained for both parties. It is also a specialist's job to ensure that a market remains liquid, by buying or selling from their own account if no one else will. Brokers move around the floor, bringing 'buy and sell' orders to the different specialists on behalf of their clients. The American Stock Exchange options exchange is one of the largest in the world, with over 1,700 options traded on stocks, American Depository Receipts, indexes, exchange traded funds, and HOLDRS. In addition, the AMEX has an extensive The American Stock market for exchange traded funds (ETFs) as they were the first Exchange to trade in this particular market. The AMEX has a listing of over 140 ETFs on general stock markets, industries and corporate bond indexes.

Лекція №21

Тема лекції: «Позачерговий ринок (позабіржовий ринок)» План лекції 1. Listing Requirements 2. Potential Benefits and Risks 2.1. Advantages 2.2. Disadvantages 3. How to Invest in Pink Sheet Stocks. The Bottom Line

Література:

75. Final Examination in English. How to succeed. Серія методичних рекомендацій щодо підготовки до державного іспиту з іноземної мови для студентів економічних спеціальностей. м. Дніпропетровськ, ДУЕП, 2005-2008рр. 76. https://www.investopedia.com/articles/fundamental-analysis/08/pink-sheets-ottcb.asp 77. https://www.benzinga.com/general/education/18/10/12443998/the-abcs-of-the-otc- markets 78. http://www.finra.org/industry/faq-regulation-nms-plan-address-extraordinary-market- volatility-plan-frequently-asked 79. https://www.iosco.org/library/pubdocs/pdf/IOSCOPD330.pdf 80. https://www.prnewswire.com/news-releases/otc-markets-group-releases-new-policy- on-stock-promotion-establishing-best-practices-to-enhance-market-transparency- 300550971.html 81. https://otc-backend- dev.s3.amazonaws.com/files/OTC_Markets_Group_Policy_on_Stock_Promotion- 1513562207637.pdf

Зміст лекції

1. Listing Requirements Pink sheet-listed companies have no requirement to be listed. All a company needs to do to get listed on the pink sheets is submit a form, entitled Form 211, with the OTC Compliance Unit. Usually this is done on behalf of a company by a market maker. The form must have current financial information. The more willing a company is to show its books, the easier it is for a broker-dealer to quote a price for that company. Some companies will make it easier and others will not; they are under no obligation to do so, and because of this, transparency is not comparable to financials for exchange-listed companies. Pink sheet-listed companies are usually very small, tightly held and may also be thinly traded. The most difficult part about the pink sheet-listed companies is many of them do not even file annual or periodic reports with the Securities & Exchange Commission (SEC). This can make it very difficult – if not nearly impossible – for an average investor to get any real information regarding these companies. You may have seen the term "OTCBB" on a stock quote, which stands for Over-the- Counter Bulletin Board. The OTCBB is a quotation service that also lists over-the-counter securities. The pink sheets are a privately held company, while the Nasdaq owns and operates the OTCBB. The other difference between the pink sheets and OTCBB is that there are stricter standards for OTCBB. OTCBB issuers have to register with the SEC. For the purpose of this article, we will only discuss the pink sheets quotation system.

2. Potential Benefits and Risks 2.1. Advantages The biggest advantage of trading pink sheets is that they are very inexpensive per share – some cost even less than $1. Because of this, even penny moves can mean a great return for an investor because of the higher volatility levels. Another advantage is finding a once-strong company that has subsequently been beaten down. If a company was once listed on a major exchange like the NYSE, but has been delisted because it no longer meets certain requirements, an investor could buy shares of that company with the hope it could make a comeback. Usually, a company is delisted because of a major financial event that makes the company's future bleak. Being early to a party may not be hip, but being early on a rising stock certainly is. When it comes to pink sheets-listed companies, you can invest in a small company that may not be nationally known. Investing in this company can be quite profitable if it continues to grow; it may even end up on a major exchange in the future. Another advantage of pink sheets firms is the introduction of a new classification or tier system for differentiating stocks. These tiers make it easier to steer clear of the higher- risk companies listed on the pink sheets market.

2.2. Disadvantages One should not forget that there are many disadvantages for investors to consider as well. First and foremost is limited information. Pink sheet-listed companies do not need to report any information to investors. This can make it difficult to know what you're buying and how the company is doing over time. Thinly traded companies are another disadvantage. Sure, you can buy 1,000 shares of the next Microsoft, but what if you made a nice profit and want to sell? When a stock is thinly traded, the chances of getting out without driving the price down are slim. No matter what the market, if you can't find a buyer, you won't get out of your position, and this is an even more difficult situation when it comes to pink sheets-listed companies. Bid-ask spreads are very high, and high bid-ask spreads can make it difficult to initiate a position in the stock. Investors also have to be aware that these companies are not usually covered by analysts. If you read or watch financial media, they rarely (if ever) cover a company that is not listed on a major exchange. This requires a lot more due diligence on the part of the investor to locate information. Of course, that information may or may not be worthwhile in the end.

3. How to Invest in Pink Sheet Stocks. The Bottom Line If you are interested in investing in pink sheet stocks you will need to find a broker. If you already have a brokerage account, chances are the broker will allow you to trade pink sheet stocks, although some brokerage firms only allow seasoned clients trading privileges in the pink sheet market. They will also ask you to sign an additional form that says you understand the risks associated with trading pink sheets stocks. A lot of investors like to use a different broker with better rates – some will charge a flat fee and others will charge a different fee to trade pink sheet stocks. You should not forget that there are many companies listed that are not interested in giving out information, and investing in them can mean losing all of the money you invested. The biggest appeal of pink sheet companies is their low price, and they are attractive to those investors that really want to get in on the ground floor of an up-and-coming company. Understanding the risks and the potential for losing your entire investment will allow you to make better decisions regarding these most speculative stocks. Pink sheets have come a long way, and with the help of the expanding OTC markets, more information and some standards have been set to help investors find out about the companies listed on the pink sheets. The introduction of a new tier system will only make those other legitimate companies listed in the pink sheet market better equipped to attract investors. Pay very careful attention to the tier system that the pink sheet market has set up, and consult an investment professional to help steer you in the right direction before taking the plunge on pink sheet stocks. Fraudulent stock promotion is an industry-wide concern that can mislead investors and disrupt the efficient pricing mechanisms of national exchanges and OTC markets. The evolution of digital platforms and the proliferation of social media have increased the ways public companies and investor relations professionals may engage with potential investors. However, today's technology-driven environment can also be abused by anonymous market manipulators. Allowing fraudulent promotion campaigns to mislead investors harms the integrity of public markets, impedes the capital formation process and tarnishes the reputation of small companies. Solving this issue requires a collective effort among industry participants and regulators to proactively share information and drive greater transparency. OTC Markets Group recognizes its important role in establishing market standards, improving investor information and driving efforts to educate investors and mitigate damage created by manipulative stock promotion. The new policy and best practices codify a core principle of OTC Markets Group's disclosure-based philosophy and the OTCQX and OTCQB Rules. It clarifies the responsibility of reputable public companies to make adequate current information available and provide timely disclosure of any news or information that might reasonably be expected to materially affect the market for its securities. This responsibility also requires public companies to quickly correct any false statements or materially misleading information spread by promoters so that public markets are not disrupted. These initiatives reinforce OTC Markets Group's ongoing market surveillance programs to provide better information, create additional investor protections and ensure a fair market pricing process. "Improving investor transparency and setting market standards with clear expectations for how reputable public companies should respond to misleading and manipulative promotion encourages management teams to more proactively address and dispel unfounded rumors and correct misinformation that can lead to unusual market activity," said Liz Heese, OTC Markets Group Executive Vice President of Issuer and Information Services. "Our goal is to provide the framework of best practices that will foster better informed and more efficient public markets." The OTC Markets Group policy provides a comprehensive outline of common characteristics of misleading and manipulative promotion and further reinforces the obligations of our issuers:  Publicly Identify Securities Being Promoted  Identifying Fraudulent Promotional Campaigns  Responsibilities of Companies with Promoted Securities  Impact on OTCQX or OTCQB Designation  Caveat Emptor Policy and Stock Promotion  Regulatory Referrals  Best Practices for Issuers OTC Markets Group continues to support investor transparency with disclosure-based market standards to indicate which issuers make adequate current information available to the public. To expand these data-driven efforts, a new designation will be implemented to publicly identify securities that are the subject of stock promotion using a "promotion risk flag" designation on the OTC Markets Group websites, including otcmarkets.com, as well as respective market data feeds. This promotion flag is designed to alert market participants and investors of the potential risks associated with trading a security during a promotion campaign and will be introduced in the first quarter, 2018. It builds upon OTC Markets Group's Caveat Emptor risk flag, which indicates public interest concerns including fraudulent stock promotion. "Recognizing the need to advance the dialogue surrounding this critical issue, OTC Markets Group continues to actively engage with regulators to improve capital formation and create more transparency for investors when there is stock promotion paid for by third- parties," said R. Cromwell Coulson, President and Chief Executive Officer, OTC Markets Group. "We believe the SEC should modernize its promotion regulations to ban anonymous, paid stock promotion and require clear disclosure when there is promotion paid for by third- parties, allowing for markets to better identify market manipulators. OTC Markets Group encourages a more thoughtful approach by regulators that lowers barriers to small company public offerings, utilizes the vast amounts of data available today to identify bad actors hiding among the private financing markets, and accelerates real-time enforcement, regulatory intervention and change."