(Answered) 1 if there were no organized financial markets

Economics

1. If there were no organized financial markets, how would an entrepreneur acquire resources to develop and pro- duce a new product?

2. Why would anyone buy shares of a corporation that had no profits and paid no dividends? What's the highest price a person would pay for such a stock?

3. Why would anyone sell a bond for less than its face (par) value?

4. If you could finance a new venture with either a stock issue or bonds, which option would you choose? What are their respective (dis)advantages?

5. Why is it considered riskier to own stock in a software company than to hold U.S. Treasury savings bonds? Which asset will generate a higher return?

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