10+ KocharTech Interview Questions and Answers

Interview questions about financial markets, stock market, derivatives, and indicators.

• Financial markets are broader than stock markets, which are a subset of financial markets.

• Stock market is a place where stocks are traded.

• PE (Price-to-Earnings) and PB (Price-to-Book) are valuation ratios used to evaluate stocks.

• Goal is to provide financial advice and help clients achieve their financial objectives.

• Derivatives are financial instruments whose value is derived from an underly...read more

The impact of a specific event on the market depends on various factors such as the nature of the event, its magnitude, and the market sentiment.

• The nature of the event: Is it political, economic, or social?

• The magnitude of the event: Is it a minor or major event?

• The market sentiment: Is the market bullish or bearish?

• Examples: Brexit, US-China trade war, COVID-19 pandemic.

• The impact can be positive or negative depending on the above factors.

Current market affairs are influenced by various factors and can have both positive and negative effects.

• The COVID-19 pandemic has had a significant impact on the market, causing volatility and uncertainty.

• Government policies and regulations can also affect the market, such as changes in interest rates or tax laws.

• Global events, such as political instability or natural disasters, can also impact the market.

• Investor sentiment and behavior can also play a role in market fluctua...read more

The market refers to the overall economic system where goods and services are bought and sold.

• Market includes buyers and sellers

• Prices are determined by supply and demand

• Market can be local, national, or global

• Examples include stock market, real estate market, and labor market

A stock is a share in the ownership of a company, representing a claim on part of the company's assets and earnings.

• Stocks are bought and sold on stock exchanges.

• Investors buy stocks in the hope of making a profit from the company's growth and success.

• Stocks can be classified as common or preferred, with different rights and benefits.

• Examples of stocks include Apple Inc. (AAPL), Amazon.com Inc. (AMZN), and Microsoft Corporation (MSFT).

Yes, I have a strong understanding of the stock market.

• I have a degree in finance and have worked in the investment industry for 5+ years.

• I actively trade stocks and have experience analyzing financial statements and market trends.

• I stay updated on market news and regularly follow stock market indices like the S&P 500.

• I understand concepts like P/E ratios, dividends, and market volatility.

Understanding how the market works and investing involves analyzing trends, researching companies, and managing risk.

• Research market trends and economic indicators

• Analyze company financials and performance

• Diversify investments to manage risk

• Stay informed about current events and news that may impact the market

Global market trends, economic conditions, and geopolitical events can impact Indian market through trade, investments, and currency exchange rates.

• Global economic conditions can affect demand for Indian exports and imports

• Geopolitical events can lead to fluctuations in stock prices and investor sentiment

• Changes in currency exchange rates can impact the cost of imports and exports

• Investor confidence in global markets can influence foreign investment in Indian markets

Family market refers to the target audience or demographic that a company focuses on for their products or services. Derivatives are financial instruments whose value is derived from an underlying asset.

• Family market is the specific group of consumers that a company aims to reach with their products or services.

• Derivatives are financial contracts that derive their value from an underlying asset such as stocks, bonds, commodities, or currencies.

• Examples of derivatives include ...read more

PE ratio is calculated by dividing the current stock price by the earnings per share (EPS).

• PE ratio = Current Stock Price / Earnings Per Share (EPS)

• It is used to evaluate the valuation of a company's stock.

• A high PE ratio may indicate that a stock is overvalued, while a low PE ratio may indicate undervaluation.

Stock market is a platform where buying, selling, and issuing of shares of publicly-held companies take place.

• Stock market allows companies to raise capital by selling shares to investors.

• Investors can buy and sell shares of publicly-traded companies through stock exchanges like NYSE and NASDAQ.

• Stock prices fluctuate based on supply and demand, company performance, economic factors, and market sentiment.

Some popular stocks include Apple, Amazon, and Tesla.

• Apple (AAPL)

• Amazon (AMZN)

• Tesla (TSLA)

Future & Options are financial instruments that derive their value from an underlying asset and allow investors to speculate on price movements.

• Future contracts obligate the buyer to purchase an asset at a specific price on a future date.

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time frame.

• Investors use futures and options for hedging, speculation, and arbitrage.

• Example: Buying a futures contr...read more

Option Greek refers to a set of risk measures used in options trading to assess the sensitivity of an option's price to various factors.

• Option Greek includes measures such as Delta, Gamma, Theta, Vega, and Rho.

• Delta measures the change in option price relative to the change in the underlying asset's price.

• Gamma measures the rate of change of Delta.

• Theta measures the effect of time decay on the option's price.

• Vega measures the sensitivity of the option price to changes in impl...read more

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

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

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

• For example, a stock option gives the holder the right to buy or sell a stock at a specified price within a certain time frame.

Stock market is a platform where securities like stocks and bonds are bought and sold.

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

• Prices of stocks are determined by supply and demand in the market.

• Stock exchanges like NYSE and NASDAQ are examples of platforms where stock trading takes place.

Equity market refers to the market where shares of publicly traded companies are bought and sold.

• Equity market is also known as stock market.

• It provides a platform for companies to raise capital by selling shares to investors.

• Investors can buy and sell shares through stock exchanges like NYSE, NASDAQ, and others.

Futures are contracts to buy or sell assets at a specified price on a future date, while options give the holder the right but not the obligation to buy or sell assets at a specified price within a certain time frame.

• Futures involve an obligation to buy or sell the underlying asset at a specified price on a future date, while options provide the holder with the right but not the obligation to buy or sell the asset at a specified price within a certain time frame.

• Futures are s...read more