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1. Financial institutions in the U.S. economy Suppose Sam would like to use $2,000 of his savings to make a financial investment. One way of

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1. Financial institutions in the U.S. economy Suppose Sam would like to use $2,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known as finance. Buying a bond issued by NanoSpeck would give Sam the firm. In the event that NanoSpeck runs into financial difficulty, will be paid first. Suppose instead Sam decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. An increase in the perceived profitability of NanoSpeck will likely cause the value of Sam's shares to rise. O The price of his shares will rise if NanoSpeck issues additional shares of stock. NanoSpeck earns revenue when Sam purchases 100 shares, even if he purchases them from an existing shareholder. Alternatively, Sam could make a financial investment by purchasing bonds issued by the government of Japan. Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a interest rate than a bond issued by the government of Japan

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