Anand Rathi Wealth Management Accountant Interview Questions and Answers

Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.

• Financial markets facilitate the flow of capital between investors and borrowers.

• They provide a mechanism for price discovery and risk management.

• Examples of financial markets include stock exchanges, bond markets, foreign exchange markets, and commodity markets.

• Financial markets can be cla...read more

Capital Markets are financial markets where long-term securities such as stocks, bonds, and other investments are bought and sold.

• Capital Markets are where companies and governments raise funds by issuing securities to investors

• These markets are divided into primary and secondary markets

• Primary markets are where new securities are issued and sold to the public for the first time

• Secondary markets are where existing secu...read more

Money Markets are financial markets where short-term financial instruments are traded.

• Money Markets deal with short-term financial instruments such as treasury bills, commercial papers, certificates of deposit, etc.

• They are used by governments, corporations, and financial institutions to manage their short-term cash needs.

• Money Markets are considered to be safe and low-risk investments.

• They are regulated by central ban...read more

Primary market is where new securities are issued, while secondary market is where already issued securities are traded.

• Primary market involves the sale of new securities to the public for the first time

• Secondary market involves the trading of already issued securities among investors

• Primary market helps companies raise capital for their business operations

• Secondary market provides liquidity to investors who want to bu...read more

Corporate Action refers to any event initiated by a publicly-traded company that affects its shareholders.

• Corporate actions can be voluntary or mandatory.

• Examples of corporate actions include stock splits, dividends, mergers and acquisitions, and spin-offs.

• Corporate actions can have a significant impact on the value of a company's stock and the wealth of its shareholders.

• Investors need to stay informed about corporate

A mutual fund is a type of investment vehicle made up of a pool of money collected from many investors to invest in securities.

• Mutual funds are managed by professional fund managers.

• Investors buy shares in the mutual fund, which represents a portion of the holdings of the fund.

• The value of the shares is determined by the performance of the underlying securities in the fund.

• Mutual funds offer diversification and conveni...read more

Derivatives are financial contracts that derive their value from an underlying asset. Types include futures, options, swaps, and forwards.

• Derivatives are contracts between two parties that derive their value from an underlying asset.

• Futures are contracts to buy or sell an asset at a predetermined price and date.

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price an...read more

Credit default swaps are financial derivatives that allow investors to transfer credit risk.

• Credit default swaps (CDS) are contracts between two parties, where one party agrees to compensate the other party in the event of a default by a third party.

• They are used to hedge against the risk of default on loans or bonds.

• CDS can be bought or sold, and the buyer pays regular premiums to the seller in exchange for protection...read more

Money markets are financial markets where short-term borrowing and lending of funds takes place.

• Money markets facilitate the trading of short-term debt securities such as Treasury bills, commercial papers, and certificates of deposit.

• They provide a platform for governments, financial institutions, and corporations to manage their short-term liquidity needs.

• Money market instruments typically have high liquidity and low ...read more