10+ Mansukh Securities & Finance Interview Questions and Answers

Primary market is where new securities are issued and sold for the first time, while secondary market is where existing securities are traded among investors.

• Primary market involves the issuance of new securities by companies or governments.

• In the primary market, securities are sold directly by the issuer to investors.

• Examples of primary market transactions include initial public offerings (IPOs) and bond issuances.

• Secondary market involves the trading of existing securities ...read more

OTC refers to over-the-counter trading, while exchange traded refers to trading on a formal exchange.

• OTC trading occurs directly between two parties without the involvement of an exchange.

• Exchange traded refers to trading on a formal exchange, where trades are standardized and regulated.

• OTC trades are typically less transparent and have higher counterparty risk compared to exchange traded trades.

• OTC derivatives are customized contracts, while exchange traded derivatives are s...read more

Derivatives are financial contracts that derive their value from an underlying asset. Option Greeks are measures of an option's sensitivity to various factors.

• Derivatives can be used for hedging or speculation.

• Option Greeks include Delta, Gamma, Theta, Vega, and Rho.

• Delta measures the change in option price for a change in the underlying asset price.

• Gamma measures the change in Delta for a change in the underlying asset price.

• Theta measures the change in option price for a ch...read more

A financial contract between two parties based on an underlying asset or security.

• Derivatives are used for hedging or speculation.

• Examples include futures, options, swaps, and forwards.

• They derive their value from the performance of an underlying asset or security.

• Derivatives can be traded on exchanges or over-the-counter.

• They can be used to manage risk or to make a profit.

• Derivatives played a role in the 2008 financial crisis.

• Regulation of derivatives has increased since the...read more

My goal is to analyze the current market price and make informed decisions to maximize profits.

• My goal is to stay up-to-date with market trends and news

• I will use data analysis tools to identify potential opportunities

• I will develop and implement trading strategies to maximize profits

• I will constantly monitor and adjust my strategies as needed

• For example, if the current market price for a particular derivative is low, I may buy it with the expectation that it will increase in...read more

Greek options are measures of sensitivity of option prices to various factors.

• Greek options include delta, gamma, theta, vega, and rho.

• Delta measures the change in option price with respect to the underlying asset price.

• Gamma measures the change in delta with respect to the underlying asset price.

• Theta measures the change in option price with respect to time.

• Vega measures the change in option price with respect to volatility.

• Rho measures the change in option price with respec...read more

The stock market is a platform where publicly traded companies' stocks are bought and sold.

• Stock market is a place where investors buy and sell shares of publicly traded companies

• It provides a platform for companies to raise capital by issuing stocks

• The stock market is influenced by various factors such as economic indicators, company performance, and global events

• Examples of stock markets include NYSE, NASDAQ, and Tokyo Stock Exchange

Derivatives are financial instruments whose value is derived from an underlying asset or benchmark.

• Derivatives can be classified into four main types: futures contracts, options contracts, swaps, and forward contracts.

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

• Options contracts give the holder the right, but not the obligation, to buy or sell an asset at a specified price within a certain time period.

• Swaps involve ...read more

Companies buy back their own shares to return capital to shareholders and signal confidence in the company's future.

• Buybacks can increase the value of remaining shares by reducing the number of outstanding shares.

• It allows companies to utilize excess cash and improve financial ratios.

• Buybacks can be used to offset dilution caused by employee stock options or convertible securities.

• Companies may buy back shares to prevent hostile takeovers or to consolidate ownership.

• Buybacks ...read more

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

• Derivatives can be used for hedging or speculation.

• Examples include futures contracts, options contracts, and swaps.

• Futures contracts allow parties to agree on a price for an asset at a future date.

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

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

Pairs Trading Strategy

• Pairs trading involves identifying two stocks that historically move in a similar pattern

• One stock is bought while the other is shorted when they deviate from their historical correlation

• Profits are made when the stocks revert back to their historical correlation

2.5% of 6400 is 160.

• To find 2.5% of a number, divide the number by 40.

• So, 6400 divided by 40 is 160.