Northern Trust Interview Questions, Process, and Tips

I attended a 1-hour interview for the Analyst role. The questions were easy to moderate and included a mix of tasks. I was asked to read a paragraph aloud while recording, which tested my communication skills. There were also logical reasoning questions and basic math problems on topics like distance and time. The process was smooth, and the questions focused on analytical thinking and clarity in communication.

Q1. Introduce yourself
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Q2. What is trade life cycle
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Q3. What is option with example
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Q4. Difference between trial balance and balance sheet
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Q5. What is ETF
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Q6. What is mortgage back security
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Q7. What is stock exchange
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Q8. SEBI guidelines
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Q9. What is Repo rate
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Q10. Different between forward and future contact
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Q11. What is short selling
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Q12. Exel short cut
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Q13. Why do you want to work at Northern Trust?
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Q14. What qualifications and experiences make you a suitable candidate for this position?
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Q15. What are your strengths and weaknesses?
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Q16. Questions relating to vlook up and Advance excel formula
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This is a protracted test in which it has section like math, reasoning, english, listening and speaking test.

Q1. Walk me through your resume (which means to give a self intro of yours)
Ans. 
I am a finance professional with experience in investment operations outsourcing.
• I have a Bachelor's degree in Finance from XYZ University.

• I have worked as an analyst at ABC Investment Firm for 3 years, where I managed investment operations outsourcing for clients.

• I am proficient in using various financial software and tools such as Bloomberg and Excel.

• I have strong analytical and problem-solving skills, which have hel...read more
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Q2. Structure of stock market
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Stock market is a platform where securities like stocks and bonds are bought and sold.
• Stock market is a place where investors buy and sell shares of publicly traded companies.

• It provides a platform for companies to raise capital by issuing stocks to the public.

• Stock markets can be physical locations (e.g. New York Stock Exchange) or virtual (e.g. NASDAQ).

• Prices of stocks are determined by supply and demand, influenced ...read more
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Q3. Questions regarding your summer internship work
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Q4. Non academic questions like what are your personal long term goals, if you could work long hours, rotational shift and all
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Q5. Difference between equity and debt financial instrument (and also have knowledge of different financial instruments)
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Q6. Types of financial derivatives
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Financial derivatives are contracts whose value is derived from the performance of an underlying asset, index, or rate.
• Types include options, futures, forwards, and swaps

• Options 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

• Futures are standardized contracts to buy or sell an asset at a specified price on a specified date in the future

• Forwar...read more
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Q7. About company and questions on job description
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Q1. What is investment banking
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Investment banking involves providing financial services to corporations, governments, and other institutions.
• Helping companies raise capital through issuing stocks and bonds

• Advising on mergers and acquisitions

• Providing strategic financial advice to clients

• Assisting with IPOs (Initial Public Offerings)

• Trading securities for clients
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Q2. Different between preference share and equity share capital? What is preferance share capital
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Preference shares have fixed dividend rates and priority over equity shares in terms of dividends and assets during liquidation.
• Preference shares have a fixed dividend rate, while equity shares do not guarantee dividends.

• Preference shareholders have priority over equity shareholders in terms of receiving dividends and assets during liquidation.

• Preference shares are less risky compared to equity shares.

• Preference shares...read more
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Q3. Different between trial balance and balancesheet
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Trial balance is a list of all general ledger accounts with their balances, while balance sheet is a financial statement showing assets, liabilities, and equity at a specific point in time.
• Trial balance is an internal document used to ensure the total debits equal total credits before preparing financial statements.

• Balance sheet is a financial statement that shows a company's financial position at a specific point in t...read more
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Q4. What is derivatives and it'it's types
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Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.
• Types of derivatives include futures, options, swaps, and forwards.

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

• Examples of derivatives include stock options, commodity futures, and interest rate swaps.
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Q5. Different between future and forward derivatives
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Future and forward derivatives are similar in nature but differ in terms of standardization, trading location, and counterparty risk.
• Futures contracts are standardized and traded on exchanges, while forward contracts are customized and traded over-the-counter.

• Futures contracts have daily settlement and margin requirements, while forward contracts settle at maturity.

• Futures contracts have lower counterparty risk due to ...read more
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Q6. What is hedge fund
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A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets.
• 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 charge both a management fee and a performance fee based on the fund's profits.

• Examples of hedge funds i...read more
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Q7. Example of cash and cash equivalent, and where to record
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Cash and cash equivalents are highly liquid assets that can be easily converted into cash, such as bank accounts and short-term investments.
• Cash in hand

• Bank accounts

• Short-term investments like money market funds

• Petty cash

• Where to record: Typically recorded under current assets on the balance sheet
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Q8. What is Dividend? And where should we record in the trail balance?
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Dividend is a distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or additional shares.
• Dividends are recorded in the income statement as a deduction from the company's net income.

• They are also recorded in the statement of changes in equity.

• In the trial balance, dividends are typically recorded as a reduction in the retained earnings account.

• Dividends can be paid out in t...read more
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Q9. Who receives the dividend?
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The dividend is typically received by the shareholders of a company.
• Dividends are payments made by a company to its shareholders as a distribution of profits.

• Shareholders receive dividends in proportion to the number of shares they own.

• Dividends can be paid in the form of cash, stock, or property.

• Dividend payments are usually declared by the company's board of directors.
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Q10. What is capital, and where do we record it?
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Capital refers to the financial assets or resources owned by a company, and it is recorded in the balance sheet under the equity section.
• Capital represents the funds contributed by the owners or shareholders of a company.

• It can include common stock, preferred stock, retained earnings, and additional paid-in capital.

• Capital is recorded in the balance sheet under the equity section, which shows the company's total assets...read more
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Q1. What is derivatives
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Q2. What do you kow about capital markets
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