HSBC Bank Analyst Interview Questions and Answers

Q1. What are diiferent types of securities?
Ans. 
Different types of securities include stocks, bonds, options, and mutual funds.
• Stocks represent ownership in a company

• Bonds are debt securities issued by governments or corporations

• Options give the holder the right to buy or sell an asset at a specified price

• Mutual funds pool money from multiple investors to invest in a diversified portfolio

• Other types include ETFs, futures, and derivatives
Answered by AI
Add your answer
Q2. What is Capital markets?
Ans. 
Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold.
• Capital markets facilitate the buying and selling of long-term financial instruments such as stocks and bonds.

• They provide a platform for companies and governments to raise funds for various projects and initiatives.

• Investors can trade securities in the capital markets to earn returns on their investments.

• Examples...read more
Answered by AI
View 1 more answer
Q3. What are Corporate actions?
Ans. 
Corporate actions are events initiated by a public company that can affect its stock price or ownership structure.
• Corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• These actions can impact shareholders by changing the value of their investments or the number of shares they own.

• Investors need to stay informed about corporate actions to make informed decisions about th
Answered by AI
View 1 more answer
Q4. If bonus declared by company then its effect on company's balance sheet (basically journal)?
Add your answer
Q5. If bond fv 100 issued at discount at 98 and giving fixed return @ 10%, then what is actual rate of return is it more or less than 10% and method is used for its calculation what it is called?
Ans. 
The actual rate of return is more than 10% due to the bond being issued at a discount. The method used for its calculation is Yield to Maturity (YTM).
• Bond issued at discount means the actual rate of return is higher than the fixed rate.

• Yield to Maturity (YTM) is used to calculate the actual rate of return on a bond.

• YTM takes into account the bond's current market price, par value, coupon payments, and time to maturity.
Answered by AI
Add your answer
Q6. If company declared dividend but not paid, then its effect on balance sheet of holder of shares?
Ans. 
If a company declares a dividend but does not pay it, the balance sheet of the shareholder will show an increase in their retained earnings and a corresponding decrease in their cash or assets.
• The shareholder's equity will increase by the amount of the declared dividend.

• The company's liabilities will also increase by the same amount until the dividend is paid.

• The shareholder will see an increase in their retained earni...read more
Answered by AI
Add your answer
Q7. Mutual fund boughts shares, its journal on trade date and settlement date?
Ans. 
Mutual fund buys shares on trade date and settles on settlement date.
• Mutual fund purchases shares on the trade date, which is the date the transaction is executed.

• Settlement date is the date on which the mutual fund actually pays for the shares and receives ownership.

• The journal entry on the trade date would debit the investment account and credit the cash account.

• The journal entry on the settlement date would reverse ...read more
Answered by AI
Add your answer
Q8. Types of Investment opportunities?
Ans. 
Investment opportunities include stocks, bonds, real estate, commodities, and startups.
• Stocks - buying shares of a company

• Bonds - lending money to a corporation or government

• Real estate - purchasing property for rental income or appreciation

• Commodities - investing in physical goods like gold or oil

• Startups - funding early-stage companies in exchange for equity
Answered by AI
Add your answer
Q9. What is derivatives and different types?
Ans. 
Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.
• Types of derivatives include futures, options, swaps, and forwards.

• Futures contracts obligate the buyer to purchase an asset at a specific price on a future date.

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

• Swaps involve the e...read more
Answered by AI
Add your answer

30 minutes, numerical type

Q1. Tell about yourself
Add your answer
Q2. Tell about your one achievement
Add your answer