10+ Rams Creative Technologies Interview Questions and Answers

Private equity is investing in private companies with the aim of generating high returns. Hedge funds are pools of capital from accredited individuals.

• Private equity firms invest in private companies and aim to generate high returns by improving the company's operations and financials.

• Hedge funds are pools of capital from accredited individuals and invest in a variety of assets, including stocks, bonds, and derivatives.

• Private equity investments are illiquid and have a longer...read more

Performance fee is a fee charged by investment managers based on the performance of the fund. Carry interest is a share of profits earned by investment managers.

• Performance fee is usually a percentage of the fund's profits above a certain benchmark

• Carry interest is a percentage of the profits earned by the investment manager above a certain hurdle rate

• Performance fee and carry interest are common in private equity and hedge funds

• These fees incentivize investment managers to p...read more

CFD is a financial derivative, accrual journal entries record expenses/revenues, journal entry for stock purchase affects balance sheet.

• CFD stands for Contract for Difference, a financial derivative that allows investors to speculate on the price movements of an underlying asset without owning it.

• Accrual journal entries are used to record expenses or revenues that have been incurred but not yet paid or received.

• A journal entry for the purchase of stock would typically involve...read more

Options, futures, forwards, swaps are types of financial derivatives used for hedging or speculation in the financial markets.

• Options give the holder the right, but not the obligation, to buy or sell an asset at a specified price before or on a specified date.

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

• Forwards are similar to futures but are customized contracts traded over-the-counter.

• Swaps involve exchanging cash flows or assets w...read more

High water mark is the highest peak in the value of an investment fund.

• It is the highest point that an investment fund has reached in terms of value.

• It is used to calculate the performance fees of fund managers.

• If the fund's value drops below the high water mark, the manager does not receive performance fees until the value exceeds the high water mark again.

Journal entries for prepaid expenses, subscriptions, and redemptions

• Prepaid expenses: Debit Prepaid Expense account, Credit Cash/Bank account

• Subscriptions: Debit Subscription Revenue account, Credit Cash/Bank account

• Redemptions: Debit Cash/Bank account, Credit Redemption account

Hedge funds are investment funds that pool capital from accredited individuals or institutional investors and use various strategies to generate high returns.

• Hedge funds are typically only available to accredited investors due to their complex and risky nature.

• They often use leverage and derivatives to amplify returns.

• Hedge funds can employ a variety of strategies such as long/short equity, global macro, event-driven, and quantitative.

• They charge both a management fee and a p...read more

A call option is a financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price within a specific time period.

• Call options are commonly used in stock trading and can be bought or sold on various exchanges.

• The specified price at which the asset can be bought is known as the strike price.

• The specific time period during which the option can be exercised is known as the expiration date.

• Call options provide the opportunity for in...read more

Accrual journal entries are used to recognize revenue or expenses that have been incurred but not yet recorded in the financial statements.

• Accrual journal entries involve debiting an expense account and crediting a liability account for expenses incurred but not yet paid

• Accrual journal entries involve debiting a revenue account and crediting an accounts receivable account for revenue earned but not yet received

• Accrual journal entries are necessary to ensure that financial sta...read more

GAV is the total value of a fund's assets, while NAV is the per-share value of the fund.

• GAV stands for Gross Asset Value, representing the total value of all assets in a fund.

• NAV stands for Net Asset Value, representing the per-share value of the fund after deducting liabilities.

• GAV is calculated by adding up the value of all assets in the fund, including cash, investments, and other holdings.

• NAV is calculated by subtracting the fund's liabilities from its assets and dividing...read more