10+ Mahabal Enviro Engineers Interview Questions and Answers

Market capitalisation is the total value of a company's outstanding shares.

• Market cap is calculated by multiplying the current stock price by the total number of outstanding shares.

• It is used to determine the size of a company and its overall worth.

• Companies with higher market caps are generally considered more stable and less risky investments.

• For example, Apple Inc. has a market cap of over $2 trillion as of 2021.

• Market cap can fluctuate based on changes in stock price and ...read more

Net Asset Value is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.

• Calculate the total value of all assets

• Subtract the total value of all liabilities

• Divide the result by the number of outstanding shares

• NAV = (Total Assets - Total Liabilities) / Number of Outstanding Shares

• Example: If a company has $10 million in assets and $5 million in liabilities, with 1 million outstanding shares, the NAV would be $5 per share.

Private equity involves investing in private companies, while public equity involves investing in publicly traded companies.

• Private equity firms invest in companies that are not publicly traded

• Public equity involves buying shares of publicly traded companies

• Private equity firms typically acquire a controlling stake in the company they invest in

• Public equity investors do not have control over the company

• Private equity investments are typically held for a longer period of time ...read more

General partners have unlimited liability and manage the business, while limited partners have limited liability and do not manage the business.

• General partners have unlimited liability for the debts and obligations of the business, while limited partners have limited liability and are only liable for the amount of their investment.

• General partners manage the day-to-day operations of the business, while limited partners do not have a say in management decisions.

• General partne...read more

Capital markets refer to financial markets where long-term securities are traded.

• Capital markets are where companies and governments raise funds by issuing stocks, bonds, and other securities.

• These markets are typically for long-term investments and have a lower liquidity than other financial markets.

• Examples of capital markets include the New York Stock Exchange, NASDAQ, and the bond market.

• Investors in capital markets are typically institutional investors such as pension fu...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in stocks, bonds, and other securities.

• Mutual funds are managed by professional fund managers

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying securities

• Mutual funds offer diversification and can be a good option for investors who want exposure to a variety of securities

• Examples of mutual fund companies include Vangu...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 offer diversification, liquidity, and professional management to investors.

• There are different types of mutual funds such as equi...read more

Custodian banks are financial institutions responsible for safeguarding assets, such as securities and cash, on behalf of institutional clients.

• Provide safekeeping of assets

• Settle trades on behalf of clients

• Collect income on assets

• Process corporate actions

• Provide reporting and other administrative services

• Act as a liaison between the client and the investment manager

Investment banking involves providing financial services to corporations, governments, and other institutions, including raising capital, mergers and acquisitions, and advisory services.

• Facilitates capital raising for corporations through issuing stocks and bonds

• Assists in mergers and acquisitions by advising on deals and facilitating transactions

• Provides financial advisory services to clients on various strategic matters

• Involves underwriting securities offerings and trading ...read more

General rules of accounting include consistency, relevance, reliability, and comparability.

• Consistency: Accounting methods should be applied consistently from one period to another.

• Relevance: Financial information should be relevant to the decision-making needs of users.

• Reliability: Financial information should be reliable and free from bias or error.

• Comparability: Financial information should be comparable across different companies or periods.

• Example: Using the same depreci...read more