issuing stock? Explain your choice.

30. Explain how a company can fail when the safeguards that should be in place fail.

31. What are some reasons why the investment strategy of a 30-year-old might differ from the investment

strategy of a 65-year-old?

32. Explain why a financial investor in stocks cannot earn high capital gains simply by buying companies with

a demonstrated record of high profits.

33. Explain what happens in an economy when the financial markets limit access to capital. How does this

affect economic growth and employment?

34. You and your friend have opened an account on E-Trade and have each decided to select five similar

companies in which to invest. You are diligent in monitoring your selections, tracking prices, current

events, and actions the company has taken. Your friend chooses his companies randomly, pays no
attention to the financial news, and spends his leisure time focused on everything besides his
{"creationdate": "2022-12-07T14:15:44-06:00", "file_size_mb": 26.99, "batch_upload": true, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "producer": "Prince 14.2 (www.princexml.com)", "file_type": ".pdf", "total_pages": 597, "moddate": "2022-12-07T14:23:05-06:00", "uploaded_via": "batch_uploader", "upload_timestamp": "2026-02-07T15:37:44.339247", "title": "Principles of Microeconomics 3e", "file_name": "Microeconomics3e.pdf", "source": "downloads\\business\\economics\\Microeconomics3e.pdf"}