Question
Suppose Alex would like to use $1,000 of his savings to make a financial investment. One way of making a financial investment is to purchase
Suppose Alex would like to use $1,000 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 stocks to raise money for a new laba practice known as Equity or Debt?
finance. Buying a share of NanoSpeck stock would give Alex IOU, promise to pay from or a claim to partial ownership in?
the firm. In the event that NanoSpeck runs into financial difficulty, Alex and the other bondholders or the stockholders? will be paid first.
Suppose Alex decides to buy 100 shares of NanoSpeck stock.
Which of the following statements are correct?Check all that apply.
-Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Alex's shares to decline.
-The Dow Jones Industrial Average is an example of a stock exchange where he can purchase NanoSpeck stock.
-An increase in the perceived profitability of NanoSpeck will likely cause the value of Alex's shares to rise.
-Alternatively, Alex could make a financial investment by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a lower/higher? interest rate than a municipal bond issued by a state.
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