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Options for second blank: "an IOU, or promise to pay, from", "a claim to partial ownership in"
Options for third blank: the bondholders, Clinton and the other stockholders
Options for forth blank: higher, lower
Suppose Clinton decides to use $5 , 000 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 Warm Breeze, a cloud computing firm, is selling stocks to raise money for a
new lab. This practice is called finance. Buying a share of Warm Breeze stock would give
Clinton the firm. In the event that Warm Breeze runs into financial difficulty, will be paid first.
Suppose Clinton chooses to buy 250 shares of Warm Breeze stock. Which of the following
statements are correct? Check all that apply. The Dow Jones Industrial Average is an example of
a stock exchange where he can purchase Warm Breeze stock. An increase in the perceived
profitability of Warm Breeze will likely cause the value of Clinton's shares to rise. The price of
his shares will rise if Warm Breeze issues additional shares of stock. Alternatively, Clinton could
undertake their financial investment by purchasing bonds issued by the U.S. government.
Assuming that everything else is equal, a U.S. government bond that matures 10 years from now
most likely pays a interest rate than a U.S. government bond that matures 30 years from now.

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