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Large companies need a way to reach the savings of the public at large. The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs. There can be little prospect of raising the sort of sum needed from friends and people we know, and while banks may agree to provide short-term finance, they are generally unwilling to provide money on a permanent basis for long- term projects. So companies turn to the public, inviting people to lend them money, or take a share in the business in exchange for a share in future profits. This they do by issuing stocks and shares in the business through the Stock Exchange. By doing so, they can put the savings of individuals both at home and overseas into circulation.

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

Many of the services needed both by industry and by each of us are provided by the government or by local authorities. Hospitals, roads, electricity, telephones, equipment and new development, if they are to serve us properly, require more money than it is raised through taxes alone. The government, local authorities, and nationalized industries therefore frequently need to borrow money to finance major capital spending, and then too, come to the Stock Exchange.

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

1.How does a company get the public to invest their savings for it according to the passage?

A. By paying them very high interests for borrowing their savings.

B. By providing a share to them in the future profits.

C. By offering favorable terms to attract them to buy its products.

D. By selling its stocks and shares to them through the Stock Exchange.

2.According to the passage, many services wanting to serve people properly have to_______.

A. get as much finance as possible through taxes

B. get the support from the government or local authorities

C. be able to provide what people really need

D. get persistent financial support

3.According to the passage, what factor has a great effect on the workers’ job and living standard?

A. Their employers’ policy for offering good welfare to them.

B. Their employers’ strategy for the company’s development.

C. Their employers’ capacity of raising money to finance new development.

D. Their employers’ ability to make the company obtain a great profit.

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