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Hendricks Corporation purchased trading investment bonds for _______?

1) financial gain
2) dividends
3) capital appreciation
4) hedging against inflation

User Anoxy
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Final answer:

Hendricks Corporation likely bought trading investment bonds for capital appreciation and financial gain, as investors expect a return either from dividends or the resale of the investment at a higher price.

Step-by-step explanation:

Hendricks Corporation purchased trading investment bonds most likely for capital appreciation and financial gain. When firms issue stock or bonds, investors expect a rate of return either through dividends or through the increase in the value of the stock or bond, known as a capital gain. For instance, if a financial investor buys a share of stock at one price and sells it at a higher price, the profit made is the capital gain. Besides potential dividends, investors purchase such financial instruments also aiming for price appreciation, which can be motivated by factors like the performance of the issuing company, market trends, or hedging against inflation.

User Glo
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