FIN 3120 Bloomberg questions
Why do companies do IPOs - ANSIPOs incentivize entrepreneurs to innovate as IPOs provide a
way for entrepreneurs to monetize their work
Why do company manager-owners smile when they ring the stock exchange bell at their IPO -
ANSAn IPO crystalizes the value of the manager-owners stake
What is the prime reason that Jennys discretionary income is more volatile than her salary -
ANSHer mortgage payments and necessities are fixed
A wedding planning company has a high fixed cost base and a lot of debt. Who would you
rather be?
a) a shareholder in a booming economy
b) a shareholder in a stagnant economy
c) a bond holder in a booming economy
d) a bond holder in a stagnant economy - ANSa) a shareholder in a booming economy
Why are equities so volatile - ANSDue to the residual nature of earnings
which of the following statements is true?
a) when you buy an equity, your potential loss is unlimited and your maximum potential gain is
100%
b) when you buy an equity, your potential loss is 100% and your maximum potential gain is
unlimited
c)when you buy an equity, you are promised a stream of fixed dividends - ANSb) when you buy
an equity, your potential loss is 100% and your maximum potential gain is unlimited
What does the release of earnings announcements have in common with the release of
economic indicators?
a) Both are typically released on a quarterly basis.
b) both are typically published by corporations
Why do companies do IPOs - ANSIPOs incentivize entrepreneurs to innovate as IPOs provide a
way for entrepreneurs to monetize their work
Why do company manager-owners smile when they ring the stock exchange bell at their IPO -
ANSAn IPO crystalizes the value of the manager-owners stake
What is the prime reason that Jennys discretionary income is more volatile than her salary -
ANSHer mortgage payments and necessities are fixed
A wedding planning company has a high fixed cost base and a lot of debt. Who would you
rather be?
a) a shareholder in a booming economy
b) a shareholder in a stagnant economy
c) a bond holder in a booming economy
d) a bond holder in a stagnant economy - ANSa) a shareholder in a booming economy
Why are equities so volatile - ANSDue to the residual nature of earnings
which of the following statements is true?
a) when you buy an equity, your potential loss is unlimited and your maximum potential gain is
100%
b) when you buy an equity, your potential loss is 100% and your maximum potential gain is
unlimited
c)when you buy an equity, you are promised a stream of fixed dividends - ANSb) when you buy
an equity, your potential loss is 100% and your maximum potential gain is unlimited
What does the release of earnings announcements have in common with the release of
economic indicators?
a) Both are typically released on a quarterly basis.
b) both are typically published by corporations
