Nirvana Solutions Financial Analyst Interview Questions and Answers

Q1. What is bond and its types
Ans. 
A bond is a debt investment where an investor loans money to an entity which borrows the funds for a defined period at a fixed interest rate.
• Bonds are issued by governments, municipalities, corporations, and other entities to raise capital.

• Types of bonds include government bonds, corporate bonds, municipal bonds, and convertible bonds.

• Government bonds are issued by national governments and are considered low-risk inves...read more
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Q2. What is options
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Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specified price before or on a specified date.
• Options can be used for hedging, speculation, or generating income.

• There are two types of options: call options (which give the holder the right to buy an asset) and put options (which give the holder the right to sell an asset).

• Options have an expiration d...read more
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Q3. What is options Greeks
Ans. 
Options Greeks are a set of risk measures that help traders understand the sensitivity of an option's price to various factors.
• Options Greeks include Delta, Gamma, Theta, Vega, and Rho.

• Delta measures the change in the option price for a $1 change in the underlying asset price.

• Gamma measures the rate of change of Delta.

• Theta measures the change in the option price with the passage of time.

• Vega measures the sensitivity o...read more
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Q4. What is dividnend and journal entries for it
Ans. 
Dividend is a distribution of a portion of a company's earnings to its shareholders.
• Dividends are typically paid in cash or additional shares of stock.

• Journal entry for cash dividend: Debit Retained Earnings, Credit Dividends Payable.

• Journal entry for stock dividend: Debit Retained Earnings, Credit Common Stock or Paid-in Capital.

• Dividends reduce the company's retained earnings and are recorded on the balance sheet.

• Div...read more
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Q5. What is accrued income and expense and it’s entries
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Accrued income and expenses are revenues and expenses that have been earned or incurred, but not yet received or paid.
• Accrued income is revenue that has been earned but not yet received. It is recorded as a debit to an asset account and a credit to a revenue account.

• Accrued expenses are expenses that have been incurred but not yet paid. They are recorded as a debit to an expense account and a credit to a liability acco...read more
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30 min time is given questions are of logical reasoning

Q1. What is hedge funds
Ans. 
Hedge funds are investment funds that pool capital from accredited individuals or institutional investors and use various strategies to earn high returns.
• Hedge funds are typically only available to accredited investors due to their complex and risky nature.

• They often use leverage and derivatives to amplify returns.

• Hedge funds can invest in a wide range of assets, including stocks, bonds, commodities, and currencies.

• The...read more
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Q2. Accural transactions
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General mathematics questions

Q1. Be confident and revise content related to capital markets financial instrument
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