Morningstar 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

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.

• ...read more

AS stands for Autonomous System. It is a unique identifier assigned to a network.

• AS numbers are used in BGP routing to identify and exchange routing information between different networks.

• AS numbers are assigned by regional internet registries such as ARIN, RIPE NCC, and APNIC.

• Examples of AS numbers include Google's AS15169 and Amazon's AS16509.

Deferred revenue expenditure refers to expenses that are incurred in the current period but are recognized as expenses in future periods.

• Deferred revenue expenditure is also known as capital expenditure.

• It is recorded as an asset on the balance sheet and is gradually expensed over time.

• Examples include expenses incurred for research and development, advertising, and training.

• Deferred revenue expenditure is different fr...read more

I take negative feedback as an opportunity for growth and improvement.

• Listen attentively to the feedback without becoming defensive

• Reflect on the feedback and identify areas for improvement

• Seek clarification if needed to fully understand the feedback

• Develop an action plan to address the feedback

• Implement the necessary changes and monitor progress

• Ask for follow-up feedback to ensure improvement

To deal with monotony, I focus on finding new challenges, learning new skills, and seeking inspiration from others.

• Seek new challenges and projects to keep things interesting

• Learn new skills or technologies to expand my knowledge

• Find inspiration from others in the field

• Take breaks and engage in activities outside of work to refresh my mind

In 5 years, I see myself as a senior data research analyst leading a team and driving impactful insights for the organization.

• Leading a team of data research analysts

• Driving impactful insights through data analysis

• Contributing to the growth and success of the organization

• Continuously learning and staying updated with the latest data research techniques

• Building strong relationships with stakeholders and clients

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.

• ...read more

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 les...read more