Read the text below about investing in the stock markets.

Choose the best word to fill each gap from A, B or C.

Most share prices (1) wildly in the short term, so it isn’t worth investing in the stock market for anything less than five years. Factors such as age will affect what shares someone buys, and so will their attitude to (2) . Cautious investors will feel more comfortable investing in large, well-known or (3) companies whose stock prices will probably (4) steadily. Those prepared to take more of a chance may consider investing in smaller companies or new markets. Shares in these companies could drop in value, but lucky investors might see the share prices (5) up. If you are not an expert on the stock market it’s best to take advice from a stockbroker.

Experienced market analysts are able to identify small companies in their (6) phase which are likely to become profitable companies paying large (7) to investors. Buying a (8) in these companies can generate a considerable

(9) on investment. Market expert Michael Moe saw the

(10) potential for growth in the coffee shop chain Starbucks following its (11) in 1992. At that time a share cost just $17. Since then its

(12) prices have risen dramatically and the company is phenomenally successful worldwide. Moe believes that it is possible for anyone to identify exciting investment opportunities by watching, researching and understanding global economic (13) .

1 A increase B decline C fluctuate

2 A rises B risk C returns

3 A blue chip B white collar C green technology

4 A increase B fall C drop

5 A run B fire C shoot

6 A put-up B start-up C set-up

7 A interest B revenues C dividends

8 A stake B loan C equity

9 A turnover B return C capital

10 A slight B massive C rapidly

11 A AG B CEO C IPO

12 A stock B capital C buyback

13 A trends B terms C reports

huge ° fractionally ° stable ° drop ° rise ° to ° by

Interest rates for borrowers have been cut (14) from 5.75%

(15) 5.5%. This is good news for home-owners as a typical mortgage will fall by about £16 a month. Despite predictions of a crash in the UK housing market, house prices remain (16) , with an average house still costing around £185,000. Electricity prices continue to go up following the closure of a number of nuclear power plants, rising (17) as much as 30%. The Royal Mail has recorded a one third (18) in annual profit following a series of strikes and other problems. There has been a (19) increase in supermarket prices, with consumers having to pay around 12% more for a typical supermarket shop than this time last year. There has also been an

(20) in the price of petrol, which now costs around £1 a litre.