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Equities. Industry and company analysis: Introduction

This is an introduction to the functions withing the Bloomberg Terminal that allow to research equities and do company and industry analysis. Example used: Maersk and liner shipping industry
  • Equities have the same meaning as stocks and shares - they are part ownership of a company;
  • Equities confer the right to residual earnings and net assets of a company;
  • The purpose of the stock market is to provide a platform for selling and buying equities.

Source: WorldAtlas. n.d. Largest stock exchange operators worldwide as of April 2017, by market capitalization of listed companies (in trillion U.S. dollars). Statista. Accessed 27 March, 2018. Available from https://www.statista.com/statistics/270126/largest-stock-exchange-operators-by-market-capitalization-of-listed-companies/.

More facts:

  • Equities are much more volatile than bonds;
  • Symbolic meaning: owning part of a company (equity) vs interest earning investment (fixed income);
  • An example: No one has predicted the success of Apple.

Trivia:
A story about a person who sold his Apple shares too early: https://en.wikipedia.org/wiki/Ronald_Wayne

Functions

Some of the main functions for Industry analysis and company analysis within the Bloomberg Terminal are:

FUNCTION Purpose   FUNCTION Purpose
WEI  world equity index monitor   DES  company’s fact book
EQS  shows all listed equities   EM 

actuals and estimates for equities

IPO   shows equity offerings   NI  displays news stories
SECF  the discovery of securities   CCB  company’s revenue breakdown
FA  historic financial statements and future estimates   SPLC 

company’s supply chain

BI   industry analysis and data   EA  earnings overview

Every of the above function has its own distinct features which also depend on the type of security chosen. This guide provides only a brief introduction to the company and industry analysis, which is based on the Bloomberg Market Concept (BMC) course.