Suppose kenji would like to use $3,000 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. suppose nanospeck, a biotechnology firm, is selling stocks to raise money for a new lab—a practice known as . buying a share of nanospeck stock would give the firm. in the event that nanospeck runs into financial difficulty, be paid first. suppose kenji decides to buy 100 shares of nanospeck stock.
a) nanospeck earns revenue when kenji purchases 100 shares, even if he purchases them from an existing shareholder.
b) expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of kenji's shares to decline.
c) an increase in the perceived profitability of nanospeck will likely cause the value of kenji's shares to rise.