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AN
Unobstructed
SUMMER 2016
QUARTERLY INVESTMENT INSIGHT FROM HIGHTOWER LAS VEGAS
Quiz Time!
D
espite the S&P 500 reaching new all-time highs, the last few months
have been difficult to stomach. Global economic growth concerns and
the surprising Brexit vote have pushed markets around wildly. Yes, we all
know markets come back and rather than hammer that point further into your head,
we thought we would provide readers a chance to learn something new about the
markets. On with the quiz! Let us know how you do.
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What city was home to the first U.S.
stock exchange?
Which current member of the Dow Jones
Industrial Average was also an original member?
What year did the Dow Jones Industrial Average
close above 1,000 for the first time?
As of June 30th 2016, how many stocks
were in the S&P 500?
Which company in the S&P 500 produces the
most annual revenue?
What is the largest publicly-traded company
headquartered in Nevada?
Who was the first U.S. president to visit the New
York Stock Exchange while serving in office?
As of mid-2016, what is the U.S. government’s net
profit/loss on the now infamous bailouts?
On average, which year of a U.S. presidential
term is best for the stock market?
How much is a “ton of money” assuming
your ton is measured in $20 bills?
(answers on inside flap)
LAS VEGAS
BELOW ARE THE ANSWERS
TO THE STOCK MARKET QUIZ.
WE HOPE YOU ENJOYED THE EXERCISE.
1.Philadelphia
The Philadelphia Stock Exchange was
established in 1790 at the Merchants
Coffee House. The stock exchange was
called “Board of Brokers” for its first 85
years, but officially changed its name
to the Philadelphia Stock Exchange in
1875. Today, the Philadelphia Stock
Exchange holds about 16% of U.S.
trading market share.
2.General Electric (GE)
The Dow Jones Industrial Average was
established in 1896 and was made
up of 12 stocks: American Cotton Oil,
American Sugar, American Tobacco,
Chicago Gas, Distilling & Cattle
Feeding, General Electric, Laclede
Gas, National Lead, North American,
Tennessee Coal & Iron, U.S. Leather, and
United States Rubber.
3.1972
The Dow Jones Industrial Average
crossed the 1,000 mark in late 1972. As
of mid-2016, the Dow Jones Industrial
Average was trading at over 18,000.
4.505
What many don’t realize is that
inclusion in the S&P 500 is not only
about size. In order to be considered for
inclusion a company must meet certain
size, liquidity, and income thresholds.
Additionally, some companies have
multiple share classes and can end up
having more than one security listed on
the exchange. As of June 30th, 2016 the
S&P 500 was made up of 505 stocks
representing 498 parent companies.
5.Walmart
Walmart is simply gigantic. The
company’s revenues topped $485
billion in 2015, which is more than
double the next largest company by
sales, Apple. Approximately 74% of
Walmart’s sales come from inside the
U.S. while the other 26% is scattered
across the globe.
6.Las Vegas Sands (LVS)
It comes as no surprise that a gaming
company is Nevada’s largest company.
Las Vegas Sands currently has a market
capitalization of about $36 billion,
making it by far the largest Nevadaheadquartered company. Interestingly,
at the market’s low in 2009, the value
of Las Vegas Sands fell to under $1
billion. An incredible comeback indeed!
7.Ronald Reagan
President Reagan became the first U.S.
president in office to visit the NYSE on
March 28th, 1985. His visit was a salute
to “the robust American expansion”
that was occurring at
the time.
8.Approximately $69 Billion
of Profit
Banks received approximately $245
billion in aid, auto companies received
almost $80 billion, and AIG received
just under $68 billion. In addition,
the conservatorships of Fannie Mae
and Freddie Mac totaled $187 billion
and other bailouts totaled $40
billion. According to ProPublica, the
government has earned approximately
$299 billion in revenue from its
investments in addition to about $390
billion that has been returned by bailedout companies.
9.Year Three of a
Presidential Term
When it comes to presidential terms,
year three is the best for the market.
According to Cornerstone Macro,
the average return of the S&P 500
during the third year of a presidential
cycle is more than double that of any
other year.
10. Approximately
$18.16 Million
A $20 bill weighs about one gram
and it takes about 454 bills to equal
one pound. A U.S. short ton is 2,000
pounds, so it takes roughly 908,000
twenty dollar bills to equal one ton.