Question
I need help 1. Financial institutions in the U.S. economy Suppose Yakov would like to use $10,000 of his savings to make a financial investment.
I need help
1. Financial institutions in the U.S. economy
Suppose Yakov would like to use $10,000 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 TouchTech, a hand-held computing firm, is selling stocks to raise money for a new laba practice known as debt/equilty finance. Buying a share of TouchTech stock would give Yakov a claim to partial ownership in/an IOU, or promise to pay, from the firm. In the event that TouchTech runs into financial difficulty, Yakov and the others stockholders/ the bonholders will be paid first.
Suppose Yakov decides to buy 100 shares of TouchTech stock.
Which of the following statements are correct?Check all that apply.
An increase in the perceived profitability of TouchTech will likely cause the value of Yakov's shares to rise.
TouchTech earns revenue when Yakov purchases 100 shares, even if he purchases them from an existing shareholder.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock.
Alternatively, Yakov could make a financial investment by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a U.S. government bond that matures 30 years from now most likely pays a higher/lower interest rate than a U.S. government bond that matures 10 years from now.
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