Advanced English Dialogue for Business – Grandfather clause

Listen to a Business English Dialogue About Grandfather clause

Brooklyn: Hi Katherine, have you ever heard of a “normal trading unit” in finance?

Katherine: No, I haven’t. What does it mean?

Brooklyn: A normal trading unit is the standard quantity of a security that is typically traded on a stock exchange, usually consisting of a certain number of shares.

Katherine: Oh, I see. How is the normal trading unit determined?

Brooklyn: The normal trading unit is determined by the stock exchange and can vary depending on factors such as the liquidity of the security and market regulations.

Katherine: Got it. Are there any advantages to having a normal trading unit?

Brooklyn: Yes, having a normal trading unit helps facilitate orderly trading and ensures that transactions can be executed efficiently on the exchange.

Katherine: That makes sense. Thanks for explaining, Brooklyn.

Brooklyn: You’re welcome, Katherine. It’s important for investors to understand the standard practices in trading securities.

Leah: Hi Caroline, do you know what a “grandfather clause” means in business and finance?

Caroline: Yes, I do. A grandfather clause is a provision in a law or regulation that exempts certain existing entities or individuals from complying with new rules or requirements.

Leah: That’s right. Can you give me an example of how a grandfather clause might be used?

Caroline: Sure, an example would be a zoning regulation that imposes new height restrictions on buildings but exempts existing buildings that were constructed before the regulation came into effect.

Leah: I understand. How are grandfather clauses viewed in business and finance?

Caroline: Grandfather clauses are often seen as a way to provide fairness and continuity, allowing existing businesses or individuals to continue their operations without being unduly burdened by new regulations.

Leah: Got it. Are there any criticisms of grandfather clauses?

Caroline: Yes, one criticism is that grandfather clauses can perpetuate inequalities or allow certain entities to maintain competitive advantages over newcomers who must comply with stricter regulations.

Leah: Thanks for explaining, Caroline. Grandfather clauses seem like a complex aspect of regulatory law.

Caroline: You’re welcome, Leah. They indeed have implications for both businesses and regulatory frameworks.