Northern Trust
Suma Soft Interview Questions and Answers
Q1. What is call and put options and difference
Call and put options are financial contracts that give the holder the right, but not the obligation, to buy (call) or sell (put) an asset at a specified price within a specified time period.
Call option: gives the holder the right to buy an asset at a specified price within a specified time period.
Put option: gives the holder the right to sell an asset at a specified price within a specified time period.
Difference: Call options are used when the investor expects the price of t...read more
Q2. What are derivatives in financial terms?
Derivatives in financial terms are financial instruments whose value is derived from an underlying asset or group of assets.
Derivatives can be used for hedging against risk, speculating on price movements, or gaining exposure to assets without owning them.
Common types of derivatives include options, futures, forwards, and swaps.
For example, a call option gives the holder the right to buy an asset at a specified price within a certain time frame.
Another example is a futures co...read more
Q3. What is secondary market
Secondary market is where investors buy and sell securities that have already been issued.
Investors trade previously issued securities among themselves
Provides liquidity to investors by allowing them to buy and sell securities easily
Examples include stock exchanges like NYSE and NASDAQ
Q4. What is custodian bank
A custodian bank is a financial institution that holds and safeguards assets for clients, such as securities, cash, and other investments.
Provides safekeeping of assets for clients
Processes transactions related to securities and cash
May also provide other services such as fund accounting and administration
Examples include State Street, BNY Mellon, and J.P. Morgan
Q5. tell about ur master thesis
My master thesis focused on the impact of social media on consumer behavior.
Researched how social media platforms influence purchasing decisions
Analyzed data from surveys and case studies
Identified trends in online shopping behavior
Examined the role of influencers in shaping consumer preferences
Q6. What is 0% bonds
0% bonds are bonds that offer no interest payments to the bondholder.
0% bonds are issued at a discount to their face value and redeemed at face value upon maturity.
Investors purchase 0% bonds for less than face value and receive the full face value at maturity.
These bonds are also known as zero-coupon bonds.
Q7. What is equity
Equity represents ownership in a company and is calculated as assets minus liabilities.
Equity is the value of an asset after deducting any liabilities associated with that asset.
It represents the ownership interest in a company and can be in the form of common stock, preferred stock, or retained earnings.
Equity can also refer to the value of a property or investment after debts are paid off.
Equity is important for investors as it indicates the residual value that shareholders...read more
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