What are 1) Primary shares and secondary shares. 2) How mutual fund works 3) Explain Trade life cycle.

Question

Accepted Answer

Primary shares are issued by a company for the first time, while secondary shares are already issued shares being traded. Mutual funds pool money from multiple investors to invest in a diversified portfolio. Trade life cycle involves various steps from order placement to settlement.

Primary shares are issued by a company during its initial public offering (IPO), while secondary shares are traded on the secondary market among investors.
Mutual funds collect money from individual investors and invest in a diversified portfolio of securities such as stocks, bonds, and other assets.
Trade life cycle includes steps like order generation, order validation, order execution, trade confirmation, settlement, and post-trade activities.
Example: Apple issuing primary shares during its IPO, investors buying secondary shares of Microsoft on the stock exchange, mutual fund investing in a mix of stocks and bonds, trade life cycle in a stock market transaction.

What are 1) Primary shares and secondary shares. 2) How mutual fund works 3) Explain Trade life cycle.

Top Capco Technologies Business Analyst interview questions & answers

Popular interview questions of Business Analyst

Top HR questions asked in Capco Technologies Business Analyst