Bloomberg Market Concepts Exam
(Latest Update )
Questions and Answers | 100%
Correct | Grade A
Question:
what exactly do share-holders own?
Answer:
1) earnings company generates after paying off expenses
2) sum total of company assets not owed to lenders (net assets)
,Question:
how to calculate earnings
Answer:
earnings = revenue - costs
^^ revenue = income before deducting expenses
^^ earnings = profits
^^ companies report these #s on a quarterly basis... 3-4 wks after quarter is
over
(will move markets if #s are a surprise)
(earning season is more evergreen than deciduous)
Question:
how to estimate company earnings
Answer:
1) industry classification
2) suppliers & buyers
3) revenue projections
4) cost base
,Question:
industry classification
Answer:
consistency of revenue & costs differ btwn industries
some companies operate in multiple industries
(can breakdown revenues by industry)
over 2000+ global industries that are arranged hierarchically
Question:
suppliers & buyers
Answer:
know customers and how well they're doing
potential supplier problems = bankruptcy, product problems, currency
movements
^^ not only supplier to customer means has competitors
, Question:
CAPEX
Answer:
portion of customer's capital expenditure (money spent on high-value
purchases) that went to a company in a Q
Question:
revenue projections
Answer:
how big is the pie? how big is the company's slice of that pie?
how well is the market doing? is company gaining or losing market share re
competitors?
Question:
cost base
Answer:
which costs are fixed? which are variable?
^^ cost of labor, cost exposures to commodity prices
(Latest Update )
Questions and Answers | 100%
Correct | Grade A
Question:
what exactly do share-holders own?
Answer:
1) earnings company generates after paying off expenses
2) sum total of company assets not owed to lenders (net assets)
,Question:
how to calculate earnings
Answer:
earnings = revenue - costs
^^ revenue = income before deducting expenses
^^ earnings = profits
^^ companies report these #s on a quarterly basis... 3-4 wks after quarter is
over
(will move markets if #s are a surprise)
(earning season is more evergreen than deciduous)
Question:
how to estimate company earnings
Answer:
1) industry classification
2) suppliers & buyers
3) revenue projections
4) cost base
,Question:
industry classification
Answer:
consistency of revenue & costs differ btwn industries
some companies operate in multiple industries
(can breakdown revenues by industry)
over 2000+ global industries that are arranged hierarchically
Question:
suppliers & buyers
Answer:
know customers and how well they're doing
potential supplier problems = bankruptcy, product problems, currency
movements
^^ not only supplier to customer means has competitors
, Question:
CAPEX
Answer:
portion of customer's capital expenditure (money spent on high-value
purchases) that went to a company in a Q
Question:
revenue projections
Answer:
how big is the pie? how big is the company's slice of that pie?
how well is the market doing? is company gaining or losing market share re
competitors?
Question:
cost base
Answer:
which costs are fixed? which are variable?
^^ cost of labor, cost exposures to commodity prices
