Financial institutions in the U.S. economySuppose Kenji would like to use $6,000 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 RoboTroid, a robotics firm, is selling bonds to raise money for a new lab—a practice known as ____equity / debt_____finance. Buying a bond issued by RoboTroid would give Kenji ___a claim to partial ownership in / an IOU, or promise to pay, from___ firm. In the event that RoboTroid runs into financial difficulty,____the stockholders / Kenji and the other bondholders _____ will be paid first. Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a ___higher / lower__ interest rate than a municipal bond issued by a state. 1. Financial institutions in the U.S. economySuppose Kenji would like to use $6,000 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.equity/debtSuppose RoboTroid, a robotics firm, is selling bonds to raise money for a new lab-a practice known asa claim to partial ownership in/ an IOU, or promise to pay, fromfinance. Buying a bond issued byRoboTroid would give Kenjithe firm. In'thể event that RoboTroid runs into financial difficulty,will be paid first. the stockholders / Kenji and the other bondholdersSuppose instead Kenji decides to buy 100 shares of RoboTroid stock.Which of the following statements are correct? Check all that apply.RoboTroid earns revenue when Kenji purchases 100 shares, even if he purchases them from an existing shareholder.An increase in the perceived profitability of RoboTroid will likely cause the value of Kenji's shares to rise.Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Kenji's shares to decline.Alternatively, Kenji could make a financial investment by purchasing bonds issued by the U.S. government.higher/lowerAssuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays ainterest rate than amunicipal bond issued by a state.

Question

Financial institutions in the U.S. economySuppose Kenji would like to use $6,000 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 RoboTroid, a robotics firm, is selling bonds to raise money for a new lab—a practice known as ____equity / debt_____finance. Buying a bond issued by RoboTroid would give Kenji ___a claim to partial ownership in /  an IOU, or promise to pay, from___ firm. In the event that RoboTroid runs into financial difficulty,____the stockholders  /  Kenji and the other bondholders _____  will be paid first. Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a     ___higher / lower__ interest rate than a municipal bond issued by a state. 1. Financial institutions in the U.S. economySuppose Kenji would like to use $6,000 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.equity/debtSuppose RoboTroid, a robotics firm, is selling bonds to raise money for a new lab-a practice known asa claim to partial ownership in/ an IOU, or promise to pay, fromfinance. Buying a bond issued byRoboTroid would give Kenjithe firm. In'thể event that RoboTroid runs into financial difficulty,will be paid first. the stockholders / Kenji and the other bondholdersSuppose instead Kenji decides to buy 100 shares of RoboTroid stock.Which of the following statements are correct? Check all that apply.RoboTroid earns revenue when Kenji purchases 100 shares, even if he purchases them from an existing shareholder.An increase in the perceived profitability of RoboTroid will likely cause the value of Kenji's shares to rise.Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Kenji's shares to decline.Alternatively, Kenji could make a financial investment by purchasing bonds issued by the U.S. government.higher/lowerAssuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays ainterest rate than amunicipal bond issued by a state.

Accepted Answer

It is the form of Equity financing
Shares give a claim to partial ownership in the firm
The first…