Bloomberg Intelligence's 'Equity Market Minute' 9/2/2021

The video discusses trends in the IPO market, highlighting investor risk tolerance and the performance of profitable versus unprofitable IPOs. It contrasts current trends with the 1998-2000 period, noting the impact of ESG and governance issues, such as unequal voting rights, on IPOs and their potential exclusion from indexes. The video concludes with insights into how these factors influence long-term returns and equity market trends.

What trend has been observed in the performance of profitable versus unprofitable companies since 2009?

• There is no clear trend.

• Unprofitable companies have consistently outperformed profitable ones.

• Profitable companies have generally outperformed unprofitable ones.

• Both have performed equally well.

How did the investor behavior during the 1998-2000 period differ from the current period?

• Investors were more cautious in 1998-2000.

• Investors were more risk-averse in 1998-2000.

• Investors were irrationally exuberant and risk-tolerant in 1998-2000.

• Investors showed no interest in IPOs during 1998-2000.

What is a potential long-term impact of companies offering unequal voting rights?

• Inclusion in major indexes.

• Exclusion from index inclusion, affecting long-term returns.

• Increased short-term returns.

• Immediate inclusion in the passive investment wave.

What percentage of the ten largest IPOs this year have offered unequal voting rights?

• All ten IPOs.

• None of the IPOs.

• Two out of ten IPOs.

• Six out of ten IPOs.

Why might companies with unequal voting rights be excluded from indexes?

• They are too new to be included.

• They have higher short-term returns.

• They do not meet governance standards for index inclusion.

• They are not favored by passive investors.