Attempts Average 3 1 Financial institutions in the U S

Last updated: 3/27/2023

Attempts Average 3 1 Financial institutions in the U S economy Suppose Derrick decides to use 8 000 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 Arcadia a biomedical research firm is selling stocks to raise money for a new lab This practice is called finance Buying a share of Arcadia stock would give Derrick the firm In the event that Arcadia runs into financial difficulty will be paid first Suppose Derrick chooses to buy 250 shares of Arcadia stock Which of the following statements are correct Check all that apply The price of his shares will rise if Arcadia issues additional shares of stock Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Derrick s shares to decline An increase in the perceived profitability of Arcadia will likely cause the value of Derrick s shares to rise Alternatively Derrick could undertake their financial investment by purchasing bonds issued by the U S government Assuming that everything else is equal a municipal bond issued by a state most likely pays a by an electronics manufacturer interest rate than a corporate bond issued