Suppose Alex would like to use $8,000 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.finance. Buying a bondSuppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known asIssued by NanoSpeck would give Alexthe 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.O An increase in the perceived profitability of NanoSpeck will likely cause the value of Alex's shares to rise.ONanoSpeck earns revenue when Alex purchases 100 shares, even if he purchases them ftrom an existing shareholder.The Dow Jones Industrial Average is an example of a stock exchange where he can purchase NanoSpeck stock.higherAlternatively, Alex could make a financial Investment by purchasing bonds issued by the government of Japan.lowerInterest rateAssuming that everything else is equal, a bond issued by a government that is engaged in a civir war most likely pays athan a bond issued by the government of Japan.

For the purpose of making investments, alternatives that can be used are: Purchase of shares of…

Answered: Suppose Alex would like to use $8,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain. I'm already retired, so I need low-risk investments. That's why I put most of my money in U.S. Treasury bills, notes, and bonds.Choose the correct answer below. A.This makes sense because the safest investments are federally insured bank accounts and U.S. Treasury bills; there's virtually no risk of losing the principal invested. B.This does not make sense because U.S. Treasury bills, notes, and bonds are high-risk investments that offer prospects of higher returns, along with the possibility of losing the principal. C.This does not make sense because U.S Treasury bills are different than notes and bonds. The U.S Treasury bills are low-risk while the notes and bonds are high-risk. D.This makes sense because low-risk is a smart choice for a retired person with limited monthly income.
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