Bloomberg course part 4 - Equities

Reasons to delist

1. Bought out by private equity fund 2. Management fed up w regulations 3. Company could bust 4. Whole industry could have died

1. Liquid investment 2. High potential for profitability

2 Reasons the stock market is appealing

1. Raise money to expand business 2. Owners can sell stakes to the public

2 reasons companies IPO

Equity

2nd largest asset class

1. Size 2. Industry 3. Country

3 commonly used principles for organizing indices

Index

A group of similar stocks and bonds

Arturo Di Modica

Creating the charging bull to encapsulate optimism in stock market

Index move contribution

Displays how many points a stock contributed to moving an index

IPO

Initial public offering, a corporation's first offer to sell shares to the public

Circuit breaker

NYSE installed these after black Monday in 1987 which gave traders time to reconsider after a 7% sell off

Index weight

Tells you how the performance of one stock will affect the index as a whole

Volatile

The stock market is notorious for this characteristic

Aggregate member moves

These drive index movements

Purpose of the stock market

To allocate resources to the most profitable companies

S&P 500

market index of U.S. equities based on the performance of 500 large-cap stocks representing various sectors of the overall equities market