Bnp Paribas Securities Associate Interview Questions, Process, and Tips

Golden rules of Accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified.

• For example, when a company receives cash from a c...read more

Fund accounting is a specialized form of accounting used by non-profit organizations and government agencies to track and manage funds.

• Fund accounting involves tracking and reporting on funds designated for specific purposes.

• It is commonly used by non-profit organizations, government agencies, and investment companies.

• Each fund has its own set of accounts to track revenues, expenses, assets, and liabilities.

• Fund accoun...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

• Investors can buy shares of mutual funds, which represent their ownership in the fund's portfolio.

• Mutual funds can invest in stocks, bonds, money market instruments, or a combination...read more

Mutual funds AMC works by managing pooled funds from investors to invest in various securities and assets.

• AMC stands for Asset Management Company, which manages mutual funds on behalf of investors

• AMC collects money from investors and invests it in a diversified portfolio of securities

• AMC charges a fee for managing the funds, known as the expense ratio

• AMC's performance is measured by the fund's returns and how well it m

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions.

• Involves recording financial transactions

• Summarizing financial information in financial statements

• Analyzing financial data to provide insights

• Reporting financial information to stakeholders

• Examples: preparing balance sheets, income statements, cash flow statements

Fundamental rules of accounting include the principles of consistency, conservatism, materiality, and others.

• The principle of consistency states that once an accounting method is chosen, it should be consistently applied.

• The principle of conservatism suggests that when in doubt, accountants should choose the option that is least likely to overstate assets and income.

• The principle of materiality states that only signifi...read more

Corporate action refers to events initiated by a publicly traded company that can affect its shareholders and securities.

• Corporate actions can include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• These actions can impact the value of the company's stock and the rights of shareholders.

• Shareholders may need to take action or make decisions based on corporate actions announced by the compan...read more

Things that are separated or split into parts

• Mathematical operations like division

• Physical objects like a cake being divided into slices

• Groups of people or resources being divided for allocation

Ex date is the date on or after which a security is traded without a previously declared dividend or distribution.

• Ex date is the date on which a security begins trading without the dividend or distribution.

• Investors who purchase the security on or after the ex date will not receive the upcoming dividend or distribution.

• The ex date is typically set two business days before the record date.

• For example, if a company decla...read more

Record date is the date on which a company determines the shareholders eligible to receive dividends or other distributions.

• Record date is set by the company's board of directors.

• Shareholders must own the stock before the record date to receive the dividend.

• The record date is important for determining who is entitled to vote at shareholder meetings.

• Example: If a company sets a record date of June 1st, shareholders who ...read more

Pay date is the date on which an employee receives their salary or wages.

• Pay date is typically set by the employer and can vary depending on the company's payroll schedule.

• It is the day when the employee's bank account is credited with their salary.

• Pay date can be weekly, bi-weekly, monthly, etc. depending on the company's policies.

• It is an important date for employees as it marks the day they receive their hard-earned

Merger and acquisition is the process of combining two companies into one entity through various financial transactions.

• Merger involves two companies coming together to form a new company.

• Acquisition involves one company buying another company.

• Mergers and acquisitions are often done to achieve economies of scale, expand market share, or gain competitive advantage.

• Examples include Disney's acquisition of 21st Century Fo...read more

Bonus shares are additional shares given to existing shareholders by a company, usually as a reward for holding shares.

• Bonus shares are issued by a company to its existing shareholders free of charge.

• They are given out of the company's profits or reserves.

• Bonus shares do not result in any cash outflow for shareholders.

• They increase the total number of shares outstanding but do not change the overall value of the compan...read more

A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other assets.

• Mutual funds are managed by professional fund managers

• Types of mutual funds include equity funds, debt funds, balanced funds, index funds, and sectoral funds

• Equity funds invest primarily in stocks, while debt funds invest in fixed-income securities

• Balanced funds invest in a mix of stocks an...read more