Suppose Alex would like to invest $9,000 of his savings One way of investing is

Question

Suppose Alex would like to invest $9,000 of his savings One way of investing is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab--a practice known as issued by NanoSpeck would give Alex Y finance. Buying a bond the firm. In the event that NanoSpeck runs into financial difficulty, will be paid first Suppose instead Alex decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply An increase in the perceived profitability of NanoSpeck will likely cause the value of Mex's shares to rise. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Nanospeck stock The price of his shares will rise if NanoSpeck issues additional shares of stock. Alternatively, Alex could invest 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 municipal bond issued by a state. interest rate than a

Explanation / Answer

Answer :- 1.. Selling bonds to raised money for a new lab - a practice known as EQUITY finance.

.. Buying a bond issued by Nanospeck would give Alex PARTIAL OWNERSHIP in the firm.

.. In the event that Nanospeck run into financial difficulty , BONDHOLDERS will be paid first.

2. Correct option - (An increase in the perceived profitability of Nanospeck will likey cause the value of alex's share to rise.)

3. A corporate bond issued by an electronics manufacturer likely to pay a HIGHER interest rate than a municipal bond issued by a state .

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