Morningstar Senior Data Research Analyst Interview Questions, Process, and Tips

Capital market is a financial market where long-term securities are traded.

• Capital market is a market for long-term securities such as stocks, bonds, and mutual funds.

• It is a platform for companies to raise capital by issuing securities.

• Types of capital market include primary market, secondary market, and money market.

• Primary market is where new securities are issued for the first time, while secondary market is where ...read more

Corporate actions are events initiated by a company that can affect the stock price and shareholder value.

• Types of corporate actions include stock splits, dividends, mergers and acquisitions, spin-offs, and rights issues.

• Corporate actions can be used to reward shareholders, raise capital, or restructure a company.

• Investors need to be aware of corporate actions as they can impact their investment decisions and portfolio

The three financial statements are linked through the flow of information and data between them.

• The income statement shows revenue and expenses for a specific period of time.

• The balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• The cash flow statement shows the inflow and outflow of cash during a specific period of time.

• Net income from the income statement is used to calculat...read more

Basic EPS is calculated using only outstanding shares while Diluted EPS takes into account the potential dilution of convertible securities.

• Basic EPS is calculated by dividing the net income by the outstanding shares.

• Diluted EPS takes into account the potential dilution of convertible securities such as stock options, warrants, and convertible bonds.

• Diluted EPS is always lower than Basic EPS because it assumes that all...read more

Minority interest/ Non controlling interest refers to the ownership of less than 50% of a company's shares by an investor or group.

• It is also known as non-controlling interest (NCI) or minority equity.

• NCI is reported on the balance sheet as a separate line item.

• It represents the portion of a subsidiary's net assets that are not owned by the parent company.

• NCI is entitled to a share of the subsidiary's profits and losse...read more

TSO, WASO, and Treasury shares are all related to the number of outstanding shares of a company.

• TSO stands for Total Shares Outstanding and refers to the total number of shares of a company that are currently owned by shareholders.

• WASO stands for Weighted Average Shares Outstanding and is a calculation that takes into account any changes in the number of outstanding shares over a period of time.

• Treasury shares are shar...read more

Financial statements include balance sheet, income statement, and cash flow statement.

• Balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• Income statement shows a company's revenue, expenses, and net income over a period of time.

• Cash flow statement shows a company's inflows and outflows of cash over a period of time.

• All three statements are important for analyzing a company's fin