Bloomberg Market Concepts Certification | Questions with 100% Correct Answers | Updated & Verified

Why do companies do IPOs? - IPOs 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? - An IPO reveals the value of the manager-owners' stake. In 1999, James Glassman and Kevin Hassett published a book called "Dow 36,000". At the time, the Dow Jones Industrial Average Index was just under 12,000. Which of the following is a potential substitute for the book title? - "The Sum of the Share Prices of All 30 Dow Jones Members Will Triple" What is the prime reason that Jenny's discretionary income is more volatile than her salary? - Her mortgage payments and necessities are fixed. A luxury cell phone maker has a high fixed-cost base and a lot of debt. Which stakeholder in the company would you rather be? - a shareholder in a booming economy What would the approximate return be on the S&P 500 from the trough of March 2009 (680) to the end of 2013 (1,848), ignoring dividends? - 170%