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Your Cousin Wants to Buy Either Stock or Bonds in Holistic

Question 192

Essay

Your cousin wants to buy either stock or bonds in Holistic Healing Inc., but he isn't sure which to buy. Explain how each of his quotes below should affect his choice between the stock and the bond.
a. "I have reason to believe that the company will be announcing a new holistic remedy that has amazing health benefits."
b. "I would like to tell people I am part owner of Holistic Healing Inc."
c. "I do not want to take on much risk."

Correct Answer:

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a. Presumably, when this happens, unless...

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