Interview Questions and Answers

It is not possible to accurately predict the performance of specific stocks in the next 5 days due to market volatility and various external factors.

• Stock market performance is influenced by a wide range of factors including economic indicators, company news, geopolitical events, and investor sentiment.

• Short-term stock predictions are highly speculative and can be influenced by unpredictable events.

• It is recommended to focus on long-term investment strategies and diversificat...read more

Put and call options are financial contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

• Put option: Gives the holder the right to sell an asset at a specified price before a certain date.

• Call option: Gives the holder the right to buy an asset at a specified price before a certain date.

• Options are commonly used in financial markets for hedging or speculation.

• Example: A put option on a stock with a ...read more

The process to take over client money involves proper documentation, client consent, and regulatory compliance.

• Obtain written consent from the client to transfer their funds

• Ensure all necessary documentation is completed accurately

• Follow regulatory guidelines and compliance procedures

• Transfer the funds securely to the designated account

• Maintain records of the transaction for audit purposes

Repo rate is the rate at which the central bank lends money to commercial banks, while reverse repo rate is the rate at which the central bank borrows money from commercial banks.

• Repo rate is currently at 4.00% in India as of September 2021.

• Reverse repo rate is currently at 3.35% in India as of September 2021.

• Repo rate is used by the central bank to control inflation and stimulate economic growth.

• Reverse repo rate is used to absorb excess liquidity in the banking system.

Shareholders are individuals or entities that own shares in a company, giving them ownership stake and voting rights.

• Shareholders can be individuals, institutions, or other entities

• They own shares of a company, representing ownership stake

• Shareholders have voting rights in company decisions

• They may receive dividends based on company performance

• Shareholders can influence company policies and decisions through voting

Preference shares are a type of security that has a fixed dividend and priority over common shares in terms of payment.

• Preference shares receive fixed dividends before common shareholders

• Preference shareholders have priority over common shareholders in terms of payment in case of liquidation

• Preference shares may be convertible into common shares

• Preference shares do not usually carry voting rights

• Preference shares can be cumulative or non-cumulative