Suppose Bob would like to use $4,000 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 bonds to raise money for a new lab—a practice known as finance. Buying a bond issued by TouchTech would give Bob the firm. In the event that TouchTech runs into financial difficulty, will be paid first. Suppose instead Bob decides to buy 100 shares of TouchTech stock. Which of the following statements are correct? Check all that apply. TouchTech earns revenue when Bob purchases 100 shares, even if he purchases them from an existing shareholder. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Bob's shares to decline. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock. Alternatively, Bob 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 interest rate than a municipal bond issued by a state.
Suppose Bob would like to use $4,000 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 bonds to raise money for a new lab—a practice known as finance. Buying a bond issued by TouchTech would give Bob the firm. In the event that TouchTech runs into financial difficulty, will be paid first. Suppose instead Bob decides to buy 100 shares of TouchTech stock. Which of the following statements are correct? Check all that apply. TouchTech earns revenue when Bob purchases 100 shares, even if he purchases them from an existing shareholder. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Bob's shares to decline. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock. Alternatively, Bob 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 interest rate than a municipal bond issued by a state.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 1MC
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1. Financial institutions in the U.S. economy
Suppose Bob would like to use $4,000 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 bonds to raise money for a new lab—a practice known as finance. Buying a bond issued by TouchTech would give Bob the firm. In the event that TouchTech runs into financial difficulty, will be paid first.
Suppose instead Bob decides to buy 100 shares of TouchTech stock.
Which of the following statements are correct? Check all that apply.
TouchTech earns revenue when Bob purchases 100 shares, even if he purchases them from an existing shareholder.
Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Bob's shares to decline.
The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock.
Alternatively, Bob 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 interest rate than a municipal bond issued by a state.
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