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Bloomberg Market Concepts (BMC) 2026/2027
Prep Guide | High-Quality Practice Questions &
Verified Answers | Market Analysis & Finance
Training
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%
Assume that an investor in the S&P 500 reinvests his dividends. According to the chart, what
approximate return would this investor have reaped from the early 2009 (1,000) trough to the
endpoint (3,400)?
340%
Why are equities volatile?
Due to the residual nature of earnings
Which of the following statements is true?
When you buy an equity, the most you can lose is 100% and your potential gain is unlimited.
Bloomberg Market Concepts (BMC) 2026/2027
Prep Guide | High-Quality Practice Questions &
Verified Answers | Market Analysis & Finance
Training
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%
Assume that an investor in the S&P 500 reinvests his dividends. According to the chart, what
approximate return would this investor have reaped from the early 2009 (1,000) trough to the
endpoint (3,400)?
340%
Why are equities volatile?
Due to the residual nature of earnings
Which of the following statements is true?
When you buy an equity, the most you can lose is 100% and your potential gain is unlimited.
