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1. Financial institutions in the U.S. economy Suppose Karim decides to use $6,000 currently held as savings to make a financial investment. One method of

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1. Financial institutions in the U.S. economy Suppose Karim decides to use $6,000 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Bayzer, a pharmaceutical firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Bayzer stock would give Karim the firm. In the event that Bayzer runs into financial difficulty, will be paid first. Suppose Karim chooses to buy 250 shares of Bayzer stock. Which of the following statements are correct? Check all that apply. O The price of his shares will rise if Bayzer issues additional shares of stock. Bayzer earns revenue when Karim purchases 250 shares, even if he purchases them from an existing shareholder. An increase in the perceived profitability of Bayzer will likely cause the value of Karim's shares to rise. Alternatively, Karim could undertake their financial investment by purchasing bonds issued by the U.S. government

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