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Suppose Osvaldo decides to use $7,000 currently held as savings to make a financial investment. One method of making a financial investment is the purchase
Suppose Osvaldo decides to use $7,000 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 Warm Breeze, a cloud computing firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Warm Breeze stock would give Osvaldo the firm. In the event that Warm Breeze runs into financial difficulty, will be paid first. Suppose Osvaldo chooses to buy 250 shares of Warm Breeze stock. Which of the following statements are correct? Check all that apply. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Warm Breeze stock. The price of his shares will rise if Warm Breeze issues additional shares of stock. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Osvaldo's shares to decline. Alternatively, Osvaldo could undertake their financial investment by purchasing bonds issued by the U.S. government. Assuming that everything else is equal, a U.S. government bond that matures 10 years from now most likely pays a interest rate than a U.S. government bond that matures 30 years from now
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