Bloomberg Market Concepts: Equities and Economic Indicators
1. Through Initial Public Offerings (IPOs): How do companies usually list on the
stock exchange?
2. The opportunity to earn a huge return: What makes the stock market more
appealing than the bond market for some investors?
3. Information Technology: Based on the attached SPX GICS Sector table from
the WEI function below, which sector contributed the largest daily decrease to the
SPX Index at this time?
4. CRM: Based on the MOV screenshot taken on 7/19/2023 which stock is contribut-
ing the most to the SPX index?
5. the company's owners wish to pursue other business interests: Considering
the details on company listings, which of the following is NOT a valid reason for a
company to delist from a stock exchange?
6. It amplified the impact of her income changes on her discretionary income-
: What is the significance of the financial leverage Jenny benefited from in her house
purchase?
7. The residual cash flows for equity holders decrease: What happens to the
residual cash flows for equity holders if a company's revenue decreases but its fixed
costs remain the same?
8. They receive their original investment back plus an amount equal to the
yield each year: What is the best-case scenario for a bond investor who holds a
bond to maturity?
9. Bonds, because they offer known fixed repayments: A person who is
risk-averse is more likely to invest in
10. Reinvesting Dividends have a much greater effect in the INDU index be-
cause it is composed of much higher dividend paying stocks than the CCMP
index.: Based on the two TRA screenshots below, what can we infer about he
effects of additional returns from reinvesting dividends in the INDU versus the CCMP
indices over this 5-year period?
11. You would have outperformed the SPX by over 1000%. This demonstrates
the positive asymmetry of stock market returns: Based on the WCRS screen-
shot below, if at the end of 2013 you had invested an equal weighted portion of
$100,000 in NVIDIA and nine other companies that went bankrupt, how would your
performance compare to the SPX return at this time, and what does this imply about
the nature of stock market returns?
12. Equity holders usually lose more as bond holders have more rights to
collateral: How does the potential for losses in bond investments differ from that
of equity investments in the event of a company's bankruptcy?
1/5
, Bloomberg Market Concepts: Equities and Economic Indicators
13. Company C's stock price is expected to rise 8% per year plus the rate of
inflation while not paying any dividend: Assume expected inflation is 4% per year.
Which company would give you the highest expected return?
14. Bondholders have first claim on assets, reducing their investment risk
compared to equity holders.: If a company goes bankrupt, how does the recovery
process typically differ between bondholders and equity holders, and what impact
does this have on their respective investment risks?
15. Both are scheduled in advance: What does the release of earnings announce-
ments have in common with the release of economic indicators?
16. EMH suggests that the stock price should only respond to the earnings
report if it contains unexpected information: How might the Efficient Market
Hypothesis (EMH) explain the immediate fluctuation of a company's stock price
following an earnings report release?
17. Apple's concentrated supply reliance on Hon Hai Precision is its largest
supply chain risk factor.: Based on the SPLC screenshot what can we imply about
Apple's supply chain risk factors?
18. Higher stock prices in 3Q could have resulted in fewer buybacks, hence
the slight disappointment: Based on the attached article, what could be inferred
about the impact of stock price changes on Apple's buyback strategy?
19. Shifts in demographics and dietary preferences in emerging markets can
lead to an increased demand for meat, which subsequently increased demand
for animal feed and fertilizers: When conducting financial analysis for a fertilizer
manufacturing company, which socio-economic trend should be factored into your
financial model?
20. U.S. computer industry: Here is a table from the BI COPPG dashboard which
shows the different end-uses of Copper. Which of the following Bloomberg headlines
would have the least importance to a Copper trader?
21. TSLA currently has a higher gross profit because even though it has lower
current revenue than F. TSLA's cost of revenue is much lover than F.: Based
on the time of the attached graphs, which company has a higher gross profit and
why?
22. TSLA almost always beats its earnings forecast but there is no predictable
price pattern following the report.: Which answer most accurately describes the
pattern of TSLA earnings report history and its market price reaction?
23. The share prices will most likely go up, but it is not guaranteed: An equity
analyst accurately predicted a positive surprise in a company's quarterly results.
What is the most likely reaction of its share price?
24. Analyzing the discrepancy between the announced results and your es-
timates, considering the industry-specific drivers and market dynamics.: A
2/5
1. Through Initial Public Offerings (IPOs): How do companies usually list on the
stock exchange?
2. The opportunity to earn a huge return: What makes the stock market more
appealing than the bond market for some investors?
3. Information Technology: Based on the attached SPX GICS Sector table from
the WEI function below, which sector contributed the largest daily decrease to the
SPX Index at this time?
4. CRM: Based on the MOV screenshot taken on 7/19/2023 which stock is contribut-
ing the most to the SPX index?
5. the company's owners wish to pursue other business interests: Considering
the details on company listings, which of the following is NOT a valid reason for a
company to delist from a stock exchange?
6. It amplified the impact of her income changes on her discretionary income-
: What is the significance of the financial leverage Jenny benefited from in her house
purchase?
7. The residual cash flows for equity holders decrease: What happens to the
residual cash flows for equity holders if a company's revenue decreases but its fixed
costs remain the same?
8. They receive their original investment back plus an amount equal to the
yield each year: What is the best-case scenario for a bond investor who holds a
bond to maturity?
9. Bonds, because they offer known fixed repayments: A person who is
risk-averse is more likely to invest in
10. Reinvesting Dividends have a much greater effect in the INDU index be-
cause it is composed of much higher dividend paying stocks than the CCMP
index.: Based on the two TRA screenshots below, what can we infer about he
effects of additional returns from reinvesting dividends in the INDU versus the CCMP
indices over this 5-year period?
11. You would have outperformed the SPX by over 1000%. This demonstrates
the positive asymmetry of stock market returns: Based on the WCRS screen-
shot below, if at the end of 2013 you had invested an equal weighted portion of
$100,000 in NVIDIA and nine other companies that went bankrupt, how would your
performance compare to the SPX return at this time, and what does this imply about
the nature of stock market returns?
12. Equity holders usually lose more as bond holders have more rights to
collateral: How does the potential for losses in bond investments differ from that
of equity investments in the event of a company's bankruptcy?
1/5
, Bloomberg Market Concepts: Equities and Economic Indicators
13. Company C's stock price is expected to rise 8% per year plus the rate of
inflation while not paying any dividend: Assume expected inflation is 4% per year.
Which company would give you the highest expected return?
14. Bondholders have first claim on assets, reducing their investment risk
compared to equity holders.: If a company goes bankrupt, how does the recovery
process typically differ between bondholders and equity holders, and what impact
does this have on their respective investment risks?
15. Both are scheduled in advance: What does the release of earnings announce-
ments have in common with the release of economic indicators?
16. EMH suggests that the stock price should only respond to the earnings
report if it contains unexpected information: How might the Efficient Market
Hypothesis (EMH) explain the immediate fluctuation of a company's stock price
following an earnings report release?
17. Apple's concentrated supply reliance on Hon Hai Precision is its largest
supply chain risk factor.: Based on the SPLC screenshot what can we imply about
Apple's supply chain risk factors?
18. Higher stock prices in 3Q could have resulted in fewer buybacks, hence
the slight disappointment: Based on the attached article, what could be inferred
about the impact of stock price changes on Apple's buyback strategy?
19. Shifts in demographics and dietary preferences in emerging markets can
lead to an increased demand for meat, which subsequently increased demand
for animal feed and fertilizers: When conducting financial analysis for a fertilizer
manufacturing company, which socio-economic trend should be factored into your
financial model?
20. U.S. computer industry: Here is a table from the BI COPPG dashboard which
shows the different end-uses of Copper. Which of the following Bloomberg headlines
would have the least importance to a Copper trader?
21. TSLA currently has a higher gross profit because even though it has lower
current revenue than F. TSLA's cost of revenue is much lover than F.: Based
on the time of the attached graphs, which company has a higher gross profit and
why?
22. TSLA almost always beats its earnings forecast but there is no predictable
price pattern following the report.: Which answer most accurately describes the
pattern of TSLA earnings report history and its market price reaction?
23. The share prices will most likely go up, but it is not guaranteed: An equity
analyst accurately predicted a positive surprise in a company's quarterly results.
What is the most likely reaction of its share price?
24. Analyzing the discrepancy between the announced results and your es-
timates, considering the industry-specific drivers and market dynamics.: A
2/5
