When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead, he sells his shares through a stockbroker to some other saver who is seeking to invest his money.

      Many of the services needed both by industry and by each of us are provided the Government or by local organizations. Without hospitals, roads, electricity, railways, this country could not work. All these require continuous spending on new equipment if they are to serve us properly, requiring more money than it is raised through taxes alone. The government, local organizations, and nationalized industries therefore frequently need to borrow money to finance major capital spending, and they too, come to the Stock Exchange.

      There is hardly a man or woman in this country whose standard of living does not depend on the ability of her employers to raise money to finance new development. In one way or another this new money must come from the savings of the country. The Stock Exchange exits to provide a channel through which these savings can reach those who need finance.

5. The money which enables these companies to go ahead with their projects is____

    A. borrowed only from banks

    B. raised by the selling of shares in the companies

    C. repaired to its original owners as soon as possible

    D. provided by the employees and their friends

6. Why are people willing to buy stocks and shares?

    A. They want to help the companies to develop new projects

    B. They want to save their money

    C. They want to make more money

    D. They are required to do so by the government

7. The Stock Exchange makes it possible for the government, local organizations and nationalized industries____

    A. to make sure that everybody saves money

    B. to collect as much money as they wish

    C. to make certain everybody lends money to them

    D. to raise money to finance new developments

8. This passage is mainly about ____

    A. how to invest money in a wise way

    B. how the governments control the Stock Exchange

    C. why companies can not get money from bank

    D. how the Stock works

9. Which of the following is TRUE according to the passage?

    A. Almost everyone in this country benefits from the money raised through the Stock Exchange.

    B. If you want to buy and sell stocks, you must go to the company you are interested in.

    C. Money that hospitals, roads, telephones, and railways require is raised only through taxes.

    D. The Stock Exchange is the only channel to reach the savings of the public.

  6—10  CDDAA