eClerx Interview Questions, Process, and Tips

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Types of derivatives include futures, options, swaps, and forwards.

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

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

• Swaps involve exchanging cash flows based on different financ...read more

Futures and forward contracts differ in terms of standardization and exchange trading. Futures contracts are generally considered riskier due to their higher liquidity and potential for leverage.

• Futures contracts are standardized and traded on exchanges, while forward contracts are customized and traded over-the-counter.

• Futures contracts have higher liquidity and are more easily tradable compared to forward contracts.

• F...read more

Options are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price.

• Call options give the holder the right to buy the underlying asset at a specified price within a specific time period.

• Put options give the holder the right to sell the underlying asset at a specified price within a specific time period.

• If the price of a stock is going to ...read more

Bullish market is when the stock prices are rising, while bearish market is when the stock prices are falling.

• Bullish market is characterized by optimism and confidence among investors.

• Bearish market is characterized by pessimism and fear among investors.

• Bullish market is associated with high trading volumes and increased demand for stocks.

• Bearish market is associated with low trading volumes and decreased demand for s...read more

A credit default swap is a financial contract that allows an investor to transfer the credit risk of a bond or loan to another party.

• It is a type of derivative instrument

• The buyer of the swap pays a premium to the seller in exchange for protection against default on a particular bond or loan

• If the bond or loan defaults, the seller of the swap pays the buyer the face value of the bond or loan

• Credit default swaps played ...read more

Mathematical and logical reasoning questions for Financial Analyst position.

• 5% of 50 is 2.5

• 50% of 5 is 2.5

• To cut a cake in 8 pieces in 3 cuts, first cut the cake in half horizontally, then cut it in half vertically, and finally make two diagonal cuts from the center to the corners.

• For medical field: NO

• Data points: N/A

• Puzzle question: NO

Capital refers to the financial resources that a company uses to fund its operations and investments.

• Capital can come from various sources such as equity, debt, and retained earnings.

• It is used to purchase assets, pay for expenses, and invest in growth opportunities.

• Capital structure refers to the mix of debt and equity that a company uses to finance its operations.

• Examples of capital include cash, investments, propert...read more

Share market is a platform where stocks and securities are traded publicly.

• Share market is also known as stock market or equity market.

• It provides a platform for companies to raise capital by selling shares to the public.

• Investors can buy and sell shares of publicly traded companies through stock exchanges.

• The prices of shares are determined by supply and demand.

• Share market is influenced by various factors such as eco...read more

Debentures are a type of debt instrument issued by companies or governments to raise capital.

• Debentures are essentially loans that investors provide to the issuer

• They typically have a fixed interest rate and a maturity date

• Debentures are unsecured, meaning they are not backed by collateral

• They can be traded on stock exchanges, making them a popular investment option

• Examples of companies that have issued debentures incl...read more

Bonds are debt securities issued by companies or governments to raise capital. They pay interest to the bondholder and have a maturity date.

• Bonds are a type of fixed-income security.

• They are issued by companies or governments to raise funds.

• Bonds pay interest to the bondholder, which is usually a fixed rate.

• Bonds have a maturity date, which is when the principal amount is repaid to the bondholder.

• Bonds can be traded on...read more