100+ Head Digital Works Interview Questions and Answers

Issued shares are the total number of shares a company has authorized and distributed, while outstanding shares are the shares held by shareholders.

• Issued shares refer to the total number of shares a company has authorized and distributed to shareholders.

• Outstanding shares are the shares held by shareholders, excluding treasury shares and shares held by insiders.

• Issued shares can include both outstanding shares and treasury shares.

• Outstanding shares are important for calculat...read more

The 3 financial statements are interrelated and provide different perspectives of a company's financial performance.

• The income statement shows the company's revenues, expenses, and net income for a specific period.

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

• The cash flow statement shows the company's cash inflows and outflows for a specific period.

• The net income from the income statement is used to calculate the retained e...read more

Stock split increases the number of shares outstanding while reducing the price per share, while stock dividend distributes additional shares to existing shareholders.

• Stock split is done to make the stock more affordable for investors and increase liquidity.

• Stock dividend is usually given when a company wants to reward its shareholders without giving out cash.

• Example of stock split: Apple's 7-for-1 stock split in 2014.

• Example of stock dividend: Coca-Cola's 2% stock dividend i...read more

Depreciation is the reduction in the value of an asset over time due to wear and tear.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated by dividing the cost of the asset by its useful life.

• Examples of assets that depreciate include vehicles, machinery, and buildings.

• Depreciation can be accelerated or slowed down depending on the method used to calculate it.

• Depreciation is important for tax purposes as it can reduce tax...read more

A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other assets.

• 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 assets.

• There are different types of mutual funds, including equity funds, bond funds, money market funds, and index funds.

• Equity funds invest in stocks, bond funds inves...read more

PE ratio is a financial metric used to assess the valuation of a company's stock by comparing its market price to its earnings per share.

• PE ratio is calculated by dividing the market price per share by the earnings per share.

• It helps investors determine if a stock is overvalued or undervalued.

• A high PE ratio suggests that investors have high expectations for future earnings growth.

• A low PE ratio may indicate that the stock is undervalued.

• For example, if a company's stock is t...read more

The balance sheet, income statement, and cash flow statement are interconnected financial statements that provide a comprehensive view of a company's financial performance.

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

• The income statement shows a company's revenues, expenses, and net income over a specific period.

• The cash flow statement shows the inflows and outflows of cash from operating, investing, and financi...read more

Financial statements, cost sheet, debt to equity ratio, stock option, stock split, lease financing, profitability ratios.

• Financial statements are reports that show the financial performance of a company.

• Cost sheet of a bank includes interest expenses and income, while cost sheet of a manufacturing company includes direct and indirect costs.

• Debt to equity ratio is a financial ratio that shows the proportion of debt and equity used to finance a company's assets.

• Stock option is ...read more

Shares refer to the ownership units of a company that are traded on a stock exchange.

• Shares represent a portion of ownership in a company

• They are bought and sold on stock exchanges

• Shareholders are entitled to a portion of the company's profits and voting rights

• Shares can be common or preferred, with different rights and privileges

• Examples of companies with shares include Apple, Amazon, and Microsoft

A mutual fund is a type of investment vehicle made up of a pool of money collected from many investors to invest in 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 are a popular choice for individual investors.

• There are different types of mutual funds, including equity funds, bond funds...read more

Operational lease is short-term and used for equipment rental, while financial lease is long-term and used for asset financing.

• Operational lease is like renting equipment for a short period of time

• Financial lease is like financing an asset for a longer period of time

• Operational lease is usually cheaper and has lower risk

• Financial lease is usually more expensive and has higher risk

• Operational lease is not recorded on balance sheet, while financial lease is

• Examples of operation...read more

Answers to questions related to finance and accounting.

• Amortization is the process of spreading the cost of an intangible asset over its useful life.

• Depreciation is the process of allocating the cost of a tangible asset over its useful life.

• Depletion is the process of allocating the cost of a natural resource over its usage.

• Profitability ratios are used to measure a company's ability to generate earnings relative to its expenses and other costs.

• Basic EPS is calculated by divi...read more

Financial statements are interrelated as they provide different perspectives on the financial health of a company.

• The income statement shows the company's revenues and expenses, which directly impact the net income on the balance sheet.

• The balance sheet provides a snapshot of the company's assets, liabilities, and equity, which are also reflected in the cash flow statement.

• The cash flow statement shows how changes in the balance sheet and income statement affect cash and cash...read more

The financial statements (BS, IS, CF) have common elements such as assets, liabilities, equity, revenue, expenses, and cash flows.

• Assets: resources owned by the company

• Liabilities: obligations owed by the company

• Equity: residual interest in the assets of the company

• Revenue: income generated by the company

• Expenses: costs incurred by the company

• Cash flows: inflows and outflows of cash

Difference between Stock Split and Dividend, Operating Lease and Financing Lease, NPA

• Stock split is when a company increases the number of shares outstanding by issuing more shares to current shareholders, while dividend is a payment made to shareholders from a company's profits

• Operating lease is a short-term lease where the lessor retains ownership of the asset, while financing lease is a long-term lease where the lessee has the option to purchase the asset at the end of the...read more

Market Cap is the total value of a company's outstanding shares while Enterprise Value is the total value of a company's equity and debt.

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

• Enterprise Value takes into account a company's debt and cash reserves in addition to its market cap.

• Stock Split is when a company increases the number of outstanding shares by dividing each share into multiple shares, while Reverse Stoc...read more

Data mining involves discovering patterns and relationships in large datasets, while data analysis focuses on interpreting and drawing insights from data.

• Data mining is the process of extracting useful information from large datasets.

• Data analysis involves examining and interpreting data to draw conclusions and make informed decisions.

• Data mining uses techniques like clustering, classification, and association to discover patterns and relationships.

• Data analysis involves tech...read more

Depreciation is the allocation of the cost of tangible assets over their useful life, while amortization is the allocation of the cost of intangible assets.

• Depreciation applies to tangible assets like buildings, vehicles, and machinery.

• Amortization applies to intangible assets like patents, copyrights, and trademarks.

• Depreciation is calculated using methods like straight-line, declining balance, or units of production.

• Amortization is usually calculated using the straight-line...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated by dividing the cost of the asset by its useful life.

• Examples of assets that can be depreciated include buildings, vehicles, and equipment.

• Depreciation can be straight-line, accelerated, or based on units of production.

• Depreciation is important for tax purpos...read more

Two common liquidity ratios are current ratio and quick ratio.

• Current ratio: Current assets divided by current liabilities. It measures a company's ability to cover its short-term obligations with its short-term assets.

• Quick ratio: (Current assets - inventory) divided by current liabilities. It provides a more stringent measure of liquidity as it excludes inventory, which may not be easily convertible to cash in the short term.

A stock split increases the number of shares outstanding and decreases the price per share, but does not affect the market capitalisation.

• Stock split does not affect the total value of the company

• Market capitalisation remains the same after a stock split

• Stock split increases the number of shares outstanding and decreases the price per share

• For example, if a company has 1 million shares outstanding and the stock splits 2-for-1, the company will have 2 million shares outstandin...read more

Various company sources are used to give ESG risk ratings.

• Company reports and disclosures

• Third-party data providers

• News articles and media coverage

• Industry benchmarks and standards

• Stakeholder engagement and surveys

Open market operations refer to the buying and selling of government securities in the open market by a central bank.

• Central banks use open market operations to control the money supply and interest rates in the economy.

• When a central bank buys government securities, it injects money into the banking system, leading to lower interest rates and increased lending.

• Conversely, when a central bank sells government securities, it withdraws money from the banking system, leading to ...read more

Two important financial ratios are the current ratio and return on equity.

• Current ratio measures a company's ability to pay its short-term obligations with its short-term assets. Formula: Current Ratio = Current Assets / Current Liabilities

• Return on equity (ROE) measures a company's profitability by showing how much profit a company generates with the money shareholders have invested. Formula: ROE = Net Income / Shareholders' Equity

Depreciation is the decrease in value of tangible assets, amortization is the decrease in value of intangible assets, and impairment is the sudden decrease in value of assets.

• Depreciation is the allocation of the cost of tangible assets over their useful life.

• Amortization is the allocation of the cost of intangible assets over their useful life.

• Impairment is the sudden decrease in value of assets due to damage, obsolescence, or other factors.

• Depreciation and amortization are ...read more

The three financial statements (income statement, balance sheet, and cash flow statement) are connected through the flow of information about a company's financial performance and position.

• The income statement shows the company's revenues and expenses over a period of time, which affects the company's net income.

• The net income from the income statement flows into the balance sheet as retained earnings, affecting the company's equity.

• The cash flow statement shows how changes i...read more

Venture capital is funding provided by investors to startup companies and small businesses that are deemed to have long-term growth potential.

• Venture capital is a type of private equity financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

• Venture capitalists typically take equity in the company in exchange for their investment.

• Venture capital is often used to fund new technologies, expand working capit...read more

Sustainable finance refers to financial activities that promote sustainable economic growth while minimizing negative environmental and social impacts.

• Sustainable finance involves investing in companies that prioritize environmental and social responsibility.

• It also includes financing projects that promote sustainability, such as renewable energy and green infrastructure.

• Sustainable finance aims to balance economic growth with social and environmental responsibility.

• Examples ...read more

Private equity invests in established companies while venture capital invests in startups.

• Private equity firms invest in mature companies with a proven track record.

• Venture capital firms invest in startups with high growth potential.

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

• Venture capital firms usually take a minority stake in the company.

• Private equity firms focus on generating returns through operational improvements and cost-...read more

Annual reports contain more than just financials, such as management discussion and analysis, corporate governance, and sustainability reports.

• Management discussion and analysis provides insights into the company's strategy, operations, and future plans.

• Corporate governance section highlights the company's policies and practices related to ethical conduct, board composition, and executive compensation.

• Sustainability reports showcase the company's efforts towards environmental...read more

EBIT is earnings before interest and taxes, while EBITDA is earnings before interest, taxes, depreciation, and amortization. EBITDA is considered a better performance metric as it provides a clearer picture of a company's operating performance.

• EBIT excludes depreciation and amortization expenses, while EBITDA includes them.

• EBITDA is often used to analyze and compare the operating profitability of companies in the same industry.

• EBITDA is considered a better performance metric ...read more

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 calculate retained earnings on the balance sheet.

• Changes in cash f...read more

GAAP and IFRS are two sets of accounting standards used globally, with GAAP being primarily used in the US and IFRS being used in many other countries.

• GAAP (Generally Accepted Accounting Principles) is the accounting standard used in the United States, while IFRS (International Financial Reporting Standards) is used in many other countries around the world.

• GAAP is more rules-based, with specific guidelines for how to account for different transactions, while IFRS is more prin...read more

Revenue is the total amount of money generated by a business through sales, while income is the profit earned after deducting expenses from revenue.

• Revenue is the total amount of money generated by a business from its normal business activities.

• Income is the profit earned by a business after deducting expenses such as operating costs, taxes, and interest.

• Revenue is the top line of the income statement, while income is the bottom line.

• Example: A company generates $1 million in...read more

EPS stands for Earnings Per Share, a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

• EPS is calculated by dividing the company's net income by the number of outstanding shares.

• It is an important indicator of a company's profitability and is often used by investors to evaluate a company's performance.

• Higher EPS indicates higher profitability and potential for growth.

• EPS can be diluted or basic, depending on ...read more

Enterprise value is a measure of a company's total value, including debt and equity.

• Enterprise value is calculated as market capitalization plus debt, minority interest, and preferred shares, minus total cash and cash equivalents.

• It represents the total value of a company that would need to be paid off if the company were to be acquired.

• Enterprise value is often used in financial analysis to compare companies with different capital structures.

• Formula: Enterprise Value = Marke...read more

Interest tax shield refers to the tax savings a company receives from deducting interest expenses from its taxable income.

• Interest tax shield is a financial benefit that results from the tax-deductibility of interest payments on debt.

• It reduces the amount of taxable income, leading to lower tax liability for the company.

• The formula to calculate interest tax shield is: Interest Tax Shield = Interest Expense x Tax Rate.

• Example: If a company has $100,000 in interest expenses and...read more

WASO is Wake After Sleep Onset, TSO is Total Sleep Time, and EPS is Earnings Per Share.

• WASO is the amount of time spent awake after initially falling asleep.

• TSO is the total amount of time spent sleeping, including both REM and non-REM sleep.

• EPS is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock.

• WASO and TSO are commonly used in sleep studies, while EPS is used in financial analysis.

Data is a collection of facts, figures, and statistics that can be analyzed to gain insights and make informed decisions.

• Data is raw and unorganized information

• It can be in various forms such as text, numbers, images, audio, video, etc.

• Data can be structured or unstructured

• It is used to gain insights, make informed decisions, and solve problems

• Examples of data include customer information, sales figures, website traffic, social media posts, etc.

To set up the environment for building an Angular application, you need to install Node.js and Angular CLI.

• Install Node.js and npm

• Install Angular CLI using npm

• Create a new Angular project using CLI

• Run the project using ng serve command

Balance sheet can be presented in vertical or horizontal format, with assets on one side and liabilities and equity on the other.

• Balance sheet can be presented in a vertical format, where assets are listed on the left side and liabilities and equity on the right side.

• Alternatively, it can be presented in a horizontal format, with assets at the top and liabilities and equity below.

• Common sections on a balance sheet include current assets, non-current assets, current liabilitie...read more

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

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• Derivatives allow investors to gain exposure to various asset classes without owning the underlying assets.

• For example, a stock option is a derivative that gives the holder the right to buy or sell a specific stock at a predetermined price.

• Deri...read more

Payables turnover ratio is a financial metric that measures how quickly a company pays off its suppliers.

• It is calculated by dividing the cost of goods sold by the average accounts payable balance.

• A high ratio indicates that a company is paying off its suppliers quickly, while a low ratio suggests that it is taking longer to pay its bills.

• The ratio can be used to assess a company's liquidity and its ability to manage its cash flow.

• For example, if a company has a cost of goods...read more

I would switch to a phone call or video conference using a mobile device or landline.

• Switch to a phone call or video conference using a mobile device or landline

• Inform all participants about the change in communication method

• Ensure all necessary documents or materials are available offline

• Consider rescheduling the meeting if internet outage persists

A spin-off is a new company formed through the sale or distribution of new shares of an existing business division or subsidiary.

• Spin-offs are created when a parent company decides to separate a portion of its business into a new entity.

• Spin-offs can help unlock value for shareholders by allowing the new entity to focus on its specific market or industry.

• Examples of spin-offs include PayPal from eBay, Trivago from Expedia, and AbbVie from Abbott Laboratories.

Amortization is the process of spreading out a loan into smaller, regular payments over a period of time.

• It is used to pay off a debt over time with regular payments

• Each payment includes both principal and interest

• The amount of interest decreases over time as the principal is paid off

• Examples include mortgages, car loans, and student loans

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 losses.

• Example: If Company A owns 80% of Company B, then Compan...read more

The three financial statements are the income statement, balance sheet, and cash flow statement.

• Income statement shows a company's revenues and expenses over a specific period of time.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time.

• Cash flow statement shows how changes in balance sheet and income statement affect cash and cash equivalents.

• Example: Income statement - Revenue: $100,000, Expenses: $70,000, Net Income: $30,000

• Exampl...read more

Private equity refers to investments made in private companies or assets that are not publicly traded.

• Private equity firms raise funds from investors and use that capital to acquire companies or assets.

• They aim to improve the performance of the acquired companies and sell them for a profit.

• Private equity investments are typically illiquid and have a long-term investment horizon.

• Private equity can be used for a variety of purposes, such as growth capital, buyouts, and distress...read more

Basic EPS is calculated using only outstanding common shares while diluted EPS takes into account the potential dilution from convertible securities.

• Basic EPS is a simple calculation that divides net income by the number of outstanding common shares.

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

• The potential dilution is factored in by assuming that all convertible securities are convert...read more

Fundamental analysis is a method of evaluating a security by examining its intrinsic value.

• It involves analyzing financial and economic data to determine the underlying value of a security

• The objective is to identify undervalued or overvalued securities

• Factors considered include financial statements, industry trends, management quality, and macroeconomic conditions

• Example: analyzing a company's revenue growth, profit margins, and debt levels to determine its true value

• The goa...read more

Direct method shows actual cash inflows and outflows, while indirect method starts with net income and adjusts for non-cash items.

• Direct method directly lists cash receipts and payments, such as cash received from customers or paid to suppliers.

• Indirect method starts with net income and adjusts for non-cash items like depreciation, changes in working capital, and gains/losses on investments.

• Both methods ultimately arrive at the same ending cash balance on the Cash Flow Statem...read more

Data analysis involves several steps including data collection, data cleaning, data exploration, data modeling, and data visualization.

• Data collection: Gathering relevant data from various sources.

• Data cleaning: Removing any errors, inconsistencies, or missing values from the data.

• Data exploration: Analyzing the data to understand its characteristics and identify patterns or trends.

• Data modeling: Applying statistical or machine learning techniques to build models and make pre...read more

Primary is used to define a primary bean when multiple beans of the same type are present, while Qualifier is used to specify which bean to autowire when multiple beans of the same type are present.

• Primary annotation is used to give a higher preference to a bean when multiple beans of the same type are present in the Spring application context.

• Qualifier annotation is used to specify which bean to autowire when multiple beans of the same type are present. It helps in resolving...read more

Fault tolerance in Microservices can be achieved through redundancy, graceful degradation, and circuit breakers.

• Implementing redundancy by having multiple instances of each microservice running to handle failures.

• Using graceful degradation to ensure that the system can still function even if certain microservices are unavailable.

• Utilizing circuit breakers to prevent cascading failures by temporarily stopping requests to a failing microservice.

Enterprise Value is the total value of a company's equity and debt.

• Enterprise Value = Market Capitalization + Total Debt - Cash and Cash Equivalents

• It is used to determine the total value of a company, including its debt

• EV is often used in financial analysis to compare companies with different capital structures

• Example: If a company has a market cap of $100 million, total debt of $50 million, and cash and cash equivalents of $10 million, its EV would be $140 million

There is no single mutual fund that is the safest. It depends on individual risk tolerance and investment goals.

• Safest mutual fund varies based on individual risk tolerance and investment goals

• Low-risk options include bond funds and index funds

• High-risk options include growth funds and sector-specific funds

• Balanced funds offer a mix of stocks and bonds for moderate risk

• Consider expense ratios and past performance when selecting a mutual fund

Ratio analysis is a method of evaluating a company's financial performance by comparing different financial metrics.

• Ratio analysis helps in assessing a company's liquidity, profitability, efficiency, and solvency.

• Common ratios include current ratio, quick ratio, return on equity, and debt-to-equity ratio.

• It is important to compare ratios with industry benchmarks or historical data for better interpretation.

• Ratio analysis can help investors, creditors, and management make info...read more

Arrow functions are more concise and have a lexical 'this' binding compared to normal functions.

• Arrow functions do not have their own 'this' keyword, they inherit it from the parent scope.

• Arrow functions do not have their own 'arguments' object.

• Arrow functions cannot be used as constructors with 'new'.

• Arrow functions are more concise and have implicit return when no curly braces are used.

Depreciation is the decrease in value of an asset over time. Types include straight-line, double declining balance, and units of production.

• Depreciation is the allocation of the cost of an asset over its useful life.

• Straight-line depreciation evenly spreads the cost of an asset over its useful life.

• Double declining balance depreciation accelerates the depreciation expense in the early years of an asset's life.

• Units of production depreciation is based on the actual usage of th...read more

Bank reconciliation statement is a document that compares the bank statement with the company's accounting records.

• It helps to identify any discrepancies between the two records.

• It includes details of deposits, withdrawals, and bank charges.

• It ensures the accuracy of the company's financial records.

• It is usually prepared monthly.

• Example: If the bank statement shows a withdrawal of $100 but the company's records show a withdrawal of $80, the bank reconciliation statement will ...read more

The three financial statements are prepared by gathering financial data, organizing it into specific formats, and analyzing the results.

• Gather financial data from various sources such as income statements, balance sheets, and cash flow statements.

• Organize the data into specific formats such as revenues, expenses, assets, liabilities, and equity.

• Analyze the results to assess the financial health and performance of the company.

Receivable turnover is a financial ratio that measures a company's efficiency in collecting its accounts receivable.

• Receivable turnover = Net Credit Sales / Average Accounts Receivable

• Net Credit Sales is the total sales made on credit minus any returns or allowances

• Average Accounts Receivable is the average of the beginning and ending accounts receivable balances

• A higher receivable turnover indicates that a company is collecting its receivables more quickly

• A lower receivable ...read more

Handling difficult tasks in the workplace requires effective communication, time management, and problem-solving skills.

• Break down the task into smaller, manageable steps

• Prioritize tasks based on deadlines and importance

• Seek help or guidance from colleagues or supervisors if needed

• Stay organized and focused to avoid feeling overwhelmed

• Take breaks when necessary to recharge and refocus

• Reflect on past successes in overcoming challenges to boost confidence

P/E ratio is a valuation ratio that compares a company's current share price to its earnings per share (EPS).

• P/E ratio = Market Price per Share / Earnings per Share

• It is used to determine the relative value of a company's shares in an industry

• Different types of P/E ratio include Forward P/E, Trailing P/E, Shiller P/E

• Forward P/E uses estimated future earnings, Trailing P/E uses past earnings, Shiller P/E uses inflation-adjusted earnings over 10 years

Attributes for a research report include clarity, accuracy, relevance, organization, and proper citation.

• Clarity: The report should be easy to understand and follow.

• Accuracy: Information presented should be correct and supported by evidence.

• Relevance: The report should address the research question or topic effectively.

• Organization: The report should be well-structured with clear sections and headings.

• Proper citation: All sources used should be properly cited to give credit a...read more

A financial statement is a report that shows the financial performance and position of a company.

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

• They provide information on a company's revenue, expenses, assets, liabilities, and equity.

• Financial statements are used by investors, creditors, and analysts to evaluate a company's financial health.

• Examples of financial statements include annual reports, quarterly reports, and 10-K filings....read more

A bond is a fixed income investment where an investor loans money to an entity which borrows the funds for a defined period of time at a variable or fixed interest rate.

• Bonds are issued by governments, municipalities, corporations, and other entities to raise capital.

• Investors purchase bonds as a way to earn interest income while preserving capital.

• The importance of bonds lies in their role as a source of funding for organizations and governments, as well as providing investo...read more

EPS is calculated by dividing the company's net income by the number of outstanding shares.

• EPS = Net Income / Outstanding Shares

• Net Income is the company's total earnings after expenses and taxes

• Outstanding Shares are the total number of shares issued by the company

• EPS is an important metric for investors to evaluate a company's profitability

• Higher EPS indicates better profitability and potential for higher dividends

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 existing securities are traded.

• Money market deals with sho...read more

A promissory note is a written promise to pay a specific amount of money at a certain time.

• It is a legal document that outlines the terms of a loan or debt.

• It includes the amount borrowed, interest rate, repayment schedule, and consequences of default.

• Examples include personal loans, student loans, and business loans.

• Promissory notes can be bought and sold as a form of investment.

• They are enforceable by law and can be used as evidence in court.

Cash flow statements have three main components: operating activities, investing activities, and financing activities.

• Operating activities: cash inflows and outflows from the company's core business operations.

• Investing activities: cash inflows and outflows from buying or selling long-term assets.

• Financing activities: cash inflows and outflows from borrowing or repaying debt, issuing or buying back stock, and paying dividends.

• Net cash flow: the sum of the cash inflows and out...read more

The interview covered topics such as non-cash expenses, capital markets, share stock vs share split, GST, and WACC.

• Non-cash expenses are expenses that do not involve the payment of cash, such as depreciation and amortization.

• Capital markets are where financial securities are bought and sold, such as stocks and bonds.

• Share stock refers to the issuance of new shares of stock, while share split refers to dividing existing shares into multiple shares.

• GST (Goods and Services Tax) ...read more

The strategy to come out of private equity involves identifying potential buyers, preparing the company for sale, and negotiating the terms of the sale.

• Identify potential buyers through market research and networking

• Prepare the company for sale by improving financials, streamlining operations, and addressing any legal or regulatory issues

• Negotiate the terms of the sale, including price, payment structure, and any contingencies

• Consider alternative exit strategies, such as an I...read more

Asset backed security is a type of financial security backed by a pool of assets, while CMBS specifically refers to securities backed by commercial real estate loans.

• Asset backed securities are backed by a variety of assets such as credit card receivables, auto loans, or student loans.

• CMBS are specifically backed by commercial real estate loans, such as office buildings, shopping centers, or hotels.

• Asset backed securities are typically more diversified in terms of underlying ...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 shares that a company has repurchased and are held in its trea...read more

Goodwill is an intangible asset that represents the excess of the purchase price over the fair market value of a company's net assets.

• Goodwill is reported on the balance sheet as a non-current asset.

• It is not amortized but tested for impairment annually.

• Goodwill can arise from acquisitions of other companies or from internal business development.

• If the fair market value of the acquired company's net assets is higher than the purchase price, negative goodwill is recorded.

• Goodw...read more

EPS stands for Earnings Per Share, WASO stands for Weighted Average Shares Outstanding, and market cap is the total value of a company's outstanding shares.

• EPS is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock.

• WASO is the number of shares a company has issued and is used to calculate EPS.

• Market cap is calculated by multiplying a company's current share price by the total number of outstanding shares.

• For...read more

Liquidity ratio measures a company's ability to pay off its short-term debts using its liquid assets.

• Liquidity ratio is calculated by dividing a company's liquid assets by its short-term liabilities.

• The formula for liquidity ratio is: Liquidity Ratio = (Liquid Assets / Short-term Liabilities)

• Liquid assets include cash, marketable securities, and accounts receivable.

• Short-term liabilities include accounts payable, short-term loans, and current portion of long-term debt.

Intrinsic value refers to the actual value of a company or asset based on its fundamental characteristics, rather than its market price.

• Intrinsic value is calculated by analyzing factors such as earnings, growth potential, and assets of a company.

• It is used by investors to determine whether a stock is undervalued or overvalued.

• Warren Buffett is known for using intrinsic value as a key factor in his investment decisions.

VC stands for Venture Capital and PE stands for Private Equity. Both are types of investment firms but differ in their investment focus and stage of investment.

• VC firms invest in early-stage companies with high growth potential, while PE firms invest in more mature companies looking to expand or restructure.

• VC firms typically take equity stakes in startups, while PE firms often use a combination of equity and debt financing.

• VC firms are known for taking higher risks in exchan...read more

Threads and tasks are both used in multiprocessing, but have different characteristics and use cases.

• Threads are lightweight processes within a single process, sharing memory space. They are managed by the operating system.

• Tasks are units of work that can be executed asynchronously. They are typically managed by a task scheduler.

• Threads are suitable for parallel processing and improving performance, while tasks are useful for handling asynchronous operations and managing comp...read more

EPS is earnings per share, while P/E ratio is the price-to-earnings ratio.

• EPS is a company's net profit divided by the number of outstanding shares.

• P/E ratio is the current market price of a share divided by its EPS.

• P/E ratio is used to determine if a stock is overvalued or undervalued.

• A high P/E ratio may indicate that investors have high expectations for future growth.

• A low P/E ratio may indicate that investors have low expectations for future growth.

Angular is a front-end framework that uses HTML, CSS, and JavaScript to build dynamic web applications.

• Angular uses components to create reusable UI elements

• It uses services to share data and functionality across components

• It has a powerful template system that allows for easy data binding and manipulation

• Angular uses RxJS for reactive programming and observables

• It has a built-in router for handling navigation between pages

• Angular applications can be built and deployed as sin...read more

M&A stands for mergers and acquisitions, which is the process of combining two or more companies into a single entity.

• M&A is a common strategy used by companies to achieve growth, increase market share, or diversify their offerings.

• Examples of M&A include Disney's acquisition of 21st Century Fox, Amazon's acquisition of Whole Foods, and Facebook's acquisition of Instagram.

• M&A can be friendly or hostile, and can involve cash, stock, or a combination of both as payment.

• M&A can ...read more

ES6 introduced new features to Javascript including arrow functions, let and const, classes, and template literals.

• Arrow functions provide a concise syntax for writing functions.

• Let and const are block-scoped variables.

• Classes provide a way to create objects with methods and properties.

• Template literals allow for string interpolation and multi-line strings.

• Destructuring allows for easy extraction of values from arrays and objects.

• Spread syntax allows for easy copying and merg...read more

Data validation is the process of ensuring that data is accurate, complete, and consistent.

• Data validation involves checking data for errors, inconsistencies, and anomalies.

• It helps to ensure data quality and reliability.

• Validation can be done through various techniques such as range checks, format checks, and cross-field validation.

• Examples of data validation include verifying that a phone number has the correct number of digits or that a date is in the correct format.

• Data v...read more

Cash flow statement is a financial statement that shows the inflow and outflow of cash in a business.

• It provides information about the cash generated and used during a specific period.

• It helps in analyzing the liquidity and solvency of a business.

• It consists of three sections: operating activities, investing activities, and financing activities.

• Example: If a company has a positive cash flow from operating activities, it means that the company is generating cash from its core ...read more

ESG stands for Environmental, Social, and Governance. It is a framework used to evaluate a company's sustainability and ethical practices.

• Environmental factors include a company's impact on climate change, natural resources, and pollution.

• Social factors include a company's impact on its employees, customers, and communities.

• Governance factors include a company's leadership, transparency, and accountability.

• Investors use ESG criteria to make investment decisions that align wit...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 potential dilutive securities are exercised.

• Companies wit...read more

Open-ended funds allow investors to buy and sell shares at any time, while closed-ended funds have a fixed number of shares and trade on the stock exchange.

• Open-ended funds allow investors to buy and sell shares at any time, while closed-ended funds have a fixed number of shares.

• Open-ended funds are priced based on the net asset value (NAV) of the underlying securities, while closed-ended funds are priced based on supply and demand on the stock exchange.

• Open-ended funds are m...read more

CI/CD pipeline is a process of continuous integration and continuous delivery/deployment of software.

• CI/CD pipeline automates the software delivery process.

• It involves continuous integration of code changes, automated testing, and continuous delivery/deployment of software.

• It helps in reducing errors and improving the quality of software.

• Popular CI/CD tools include Jenkins, Travis CI, and CircleCI.

DI and IoC are design principles in software development. RestTemplate is a class for making HTTP requests. Design patterns are reusable solutions to common problems.

• DI (Dependency Injection) is a design pattern where objects are passed their dependencies rather than creating them internally.

• IoC (Inversion of Control) is a design principle where the control of object creation and lifecycle is inverted to a container or framework.

• RestTemplate is a class in Spring Framework for...read more

Implementing Spring Security involves configuring security settings in the Spring application.

• Add Spring Security dependency in pom.xml

• Configure security settings in SecurityConfig class

• Define user roles and permissions

• Use annotations like @EnableWebSecurity and @Secured

Count frequency of letters in a given string

• Create an array of size 26 to store the count of each letter (assuming only lowercase letters)

• Iterate through the string and increment the count of each letter in the array

• Print the count of each letter in the array

Components in Angular are reusable building blocks that encapsulate HTML, CSS, and TypeScript code.

• Components are the basic building blocks of an Angular application

• They are reusable and can be used across multiple pages

• Each component has its own HTML, CSS, and TypeScript code

• Components can communicate with each other using @Input and @Output decorators

• Examples of components include navbar, footer, and login form