Financial institutions in the U.S economy Suppose Tim would like to invest $10,0

Question

Financial institutions in the U.S economy Suppose Tim would like to invest $10,000 of his savings. One way investing is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a m=new lab - a practice known as_finance. Buying a share of Touch stock would give Tim_the firm. In the event that Touch Tech runs into financial difficulty,_will be paid first. Suppose Tim decides to buy 100 shares of TouchTech 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 TouchTech stock. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Tim's shares to decline. An increase in the perceived profitability of TouchTech will likely cause the value of Tim's shares to rise. Alternatively, Tim 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_interest rate than a municipal bond issued by a state

Explanation / Answer

1) Expectations of a recession will likely to reduce the Tim's shares value.

2) likely pays a higher interest rate than a municipal bond issued by a state.

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