Financial institutions in the Canadian economy Institutions

Financial institutions in the Canadian economy Institutions that sell shares to the public and use the proceeds to buy a portfolio of diverse stocks, bonds, or both are known as. Suppose NanoSpeck, a biotechnology firm, sells stock to raise money for a new lab-a practice known as finance. A share of NanoSpeck stock represents the firm. In the event that NanoSpeck runs into financial difficulty, its Assuming that everything else is equal, select the bond that most likely pays a higher interest rate: A Canadian government bond that matures 30 years from now A Canadian government bond that matures 10 years from now Which of the following statements about stocks are correct? Check all that apply. A corporation can increase the price of its stock by issuing additional shares of stock. The corporation that issues stock raises revenue every time its stock changes hands on organized stock exchanges. Expectations of a recession that will reduce economy-wide corporate profits will cause major stock indexes to decline.

Solution

Institutions that sell shares to the public and use the proceeds to but a portfolio of diverse stocks, bonds, or both are known as Mutual Fund.

Suppose NanoSpeck, a biotechnology firm, sells stock to raise money for a new lab - a practice known as equity finance. A share of NanoSpeck stock represents a claim to partial ownership in the firm. In the event that NanoSpeck runs into financial difficulty, its bondholders will be paid first.

A Canadian government bond that matures 30 years from now will pay higher interest rate because of the higher risk associated with the long-term investment.

Expectations of a recession that will reduce economy-wide corporate profits will cause major stock indexes to decline is only correct.