Suppose Derrick decides to use $2,500 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 new lab. This practice is called_______Bayzer stock would give Derrick ________the firm. In the event that Bayzer । nancial difficulty,______ will be paid first. Suppose Derrick chooses to buy 250 shares of Bayzer stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Derrick's shares to decline. The price of his shares will rise if Bayzer issues additional shares of stock. An increase in the perceived profitability of Bayzer 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________ interest rate than a corporate bond issued by an electronics manufacturer.



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