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Financial institutions in the Canadian economy

Suppose Brian would like to invest $$3,000$ of his savings.

One way of investing is to purchase stocks or bonds from a private company.

Suppose RoboTroid, a robotics firm, is selling bonds to raise money for a new lab$-$a practice known as finance. Buying a bond issued by RoboTroid would give Brian the firm. In the event that RoboTroid runs into financial difficulty, will be paid first.

Suppose instead Brian decides to buy $100$ shares of RoboTroid stock.

Which of the following statements are correct? Check all that apply.

The price of his shares will rise if RoboTroid issues additional shares of stock.

RoboTroid earns revenue when Brian purchases $100$ shares, even if he purchases them from an existing shareholder.

Expectations of a recession that will reduce economy$-$wide corporate profits will likely cause the value of Brian's shares to decline.

Alternatively, Brian could invest by purchasing bonds issued by the Canadian government.

Assuming that everything else is equal, a Canadian government bond that matures $30$ years from now most likely pays a interest rate than a Canadian government bond that matures $10$ years from now.

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