Question

Suppose Clinton decides to use $3,500 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 Bayzer, a pharmaceutical firm, is selling stocks to raise money for a hew lab. This practice is called finance. Huying a share of Bayzer stock would give Clinton the firm. In the event that Bayzer runs into financial difficulty, will be paid first. Suppose Cinton chooses to bury 250 shares of Bayzer stock. Which of the following statements are correct? Check anl that apply. Expectations of a recession that Will reduce economywide corporate pronts will likely cause the value of Clinton's shares to decline. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Bayzer stock. An increase in the percelved profitability of Bayzer will likely cause the value of clinton's shares to rise. Alternotively, Clinton could undertake theic financiaf investment 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.

Answer 1

The value of Clinton's shares can be influenced by expectations of a recession, the stock exchange where he can purchase Bayzer stock, and the perceived profitability of Bayzer.

Step-by-step explanation:

When purchasing stocks, the value of the shares can be influenced by various factors. The statements that are correct in this case are:

• Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Clinton's shares to decline. This is because during a recession, companies may experience financial difficulties, leading to a decrease in their stock value.
• The Dow Jones Industrial Average is an example of a stock exchange where Clinton can purchase Bayzer stock. The Dow Jones is a stock market index that represents the performance of 30 large publicly traded companies, including Bayzer.
• An increase in the perceived profitability of Bayzer will likely cause the value of Clinton's shares to rise. If Bayzer's profitability improves, investors may have more confidence in the company, leading to an increase in the value of its stock.