After buying 100 shares of common stock in the It\'s All Good Corporation for $2

Question

After buying 100 shares of common stock in the It's All Good Corporation for $20 per share, Popeye later sold the same shares for $25 per share. Popeye's capital gain on the total transaction is:

Regis and Kelly plan to invest in corporate securities. While Regis plans to retire next year on his 65th birthday, Kelly is celebrating her first job after college and her 22nd birthday. Which of the two investors would be well advised to choose a more conservative investment strategy?

The ABC Corporation issues a $1,000 bond, with an interest rate of 10%, and a maturity date of 2015. This creates a liability for the ABC Corporation to pay the bondholder:

After Bill and Jillian deposited nearly $30,000 in a savings account at Farmers National Bank, the bank failed and filed for bankruptcy. Because the Farmers National Bank was an FDIC member bank, Bill and Jillian's savings:

Explanation / Answer

1. $500 ($5/share on 100 shares)

2. Regis. He's old and doesn't have time to take risks.

3. The answer is (1), $100/year and pay off the $1000 maturity in 2015.

4. The answer is (1), the FDIC protects up to $250,000 in a bank account.

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