AmbitionBox
Interview Questions
- Reviews
- Salaries
- Interview Questions
- About Company
- Benefits
- Jobs
- Office Photos
- Community
Add office photos
Filter interviews by
Northern Trust Interview Questions and Answers
105 Interview questions
Corporate actions are events initiated by a company that affect its securities and shareholders, impacting stock value and ownership.
Types of corporate actions include dividends, stock splits, mergers, and acquisitions.
Dividends are payments made to shareholders from a company's profits, e.g., cash or stock dividends.
Stock splits increase the number of shares while reducing the share price, e.g., a 2-for-1 split.
M...
Fixed income refers to investment securities that provide regular income, typically through interest payments.
Includes bonds, treasury bills, and preferred stocks.
Bonds are loans made to governments or corporations, repaid with interest.
Treasury bills are short-term government securities with maturities of one year or less.
Preferred stocks offer fixed dividends and have priority over common stocks in asset liquida...
BCP stands for Business Continuity Planning, ensuring operations continue during disruptions.
BCP involves identifying potential threats to a business and their impact.
It includes creating strategies to maintain essential functions during crises.
Examples of disruptions include natural disasters, cyberattacks, or pandemics.
Testing and updating the BCP regularly is crucial for effectiveness.
BCP is part of risk manage...
Effective escalation management involves clear communication, proactive problem-solving, and stakeholder engagement.
Establish clear escalation paths: Define who to contact for different issues to avoid confusion.
Prioritize issues based on impact: For example, a system outage should be escalated faster than a minor bug.
Communicate regularly: Keep stakeholders informed about the status of escalated issues to manage ...
Liquidity refers to the ease of converting assets into cash without affecting their market price.
Liquidity is crucial for businesses to meet short-term obligations.
Cash is the most liquid asset, while real estate is less liquid.
High liquidity means assets can be quickly sold; low liquidity can lead to price drops.
Examples of liquid assets include stocks and bonds, while collectibles are less liquid.
Capital markets facilitate raising funds, while secondary markets enable trading of existing securities.
Capital Market: A financial market for buying and selling long-term securities like stocks and bonds.
Example: An IPO (Initial Public Offering) is a capital market activity where a company sells shares to the public for the first time.
Secondary Market: A market where previously issued securities are traded among ...
Fixed expenses remain constant regardless of activity level, while variable expenses fluctuate with production or sales volume.
Fixed expenses include rent, salaries, and insurance, which do not change with production levels.
Variable expenses include raw materials, sales commissions, and utility costs, which vary with production volume.
Understanding the distinction helps in budgeting and financial forecasting.
NAV, or Net Asset Value, represents the value per share of a mutual fund or an ETF, calculated by total assets minus liabilities.
NAV is calculated by dividing the total value of the fund's assets by the number of outstanding shares.
For example, if a mutual fund has total assets of $10 million and liabilities of $2 million, the NAV would be $8 million divided by the number of shares.
NAV is typically calculated at t...
Short selling is a trading strategy where an investor borrows a security and sells it with the hopes of buying it back at a lower price.
Investor borrows a security they do not own
Sells the borrowed security in the market
Hopes to buy back the security at a lower price to return to the lender
Profits from the difference between selling price and buying price
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 in the general ledger.
Balance sheet is a financial statement that shows a company's financial position at a specific point in time, includ...
Northern Trust Interview Experiences
117 interviews found
Anonymous
Selected
I applied via Company Website and was interviewed before Oct 2022. There were 3 interview rounds.
(3 Questions)
- Q1. Hedge fund basics, Reconcilation
- Q2. Trade breaks for nostro and position
- Ans.
Trade breaks for nostro and position refer to discrepancies in trade details between internal records and external counterparties.
Trade breaks can occur due to errors in trade execution, confirmation, or settlement processes.
Nostro breaks refer to discrepancies in cash or securities balances with external banks or financial institutions.
Position breaks occur when there are discrepancies in the reported positions of sec...
- Q3. Highwatermark and performance fres
(1 Question)
- Q1. Salary discussion
I appeared for an interview in Dec 2024.
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.
(16 Questions)
- Q1. Introduce yourself
- Ans.
I am a recent graduate with a degree in finance and a passion for data analysis.
Recent graduate with a degree in finance
Passionate about data analysis
Strong analytical skills
Proficient in Excel and data visualization tools
Experience with financial modeling
- Q2. What is trade life cycle
- Ans.
Trade life cycle refers to the stages involved in a trade from initiation to settlement.
Trade initiation: Trade is proposed and agreed upon by parties involved.
Trade execution: Trade is executed on the agreed terms.
Trade confirmation: Parties confirm the details of the trade.
Trade settlement: Payment and transfer of securities occur to finalize the trade.
Trade reconciliation: Ensuring all details match between parties'...
- Q3. What is option with example
- Ans.
An option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a specific price within a specific time period.
Options can be call options (the right to buy) or put options (the right to sell).
The price at which the asset can be bought or sold is called the strike price.
The specific time period during which the option can be exercised is called the expiration date...
- Q4. Difference between trial balance and balance sheet
- Ans.
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 in the general ledger.
Balance sheet is a financial statement that shows a company's financial position at a specific point in time, including a...
- Q5. What is ETF
- Ans.
ETF stands for Exchange-Traded Fund, a type of investment fund traded on stock exchanges.
ETFs are similar to mutual funds but trade like a stock on an exchange.
They typically hold assets such as stocks, commodities, or bonds.
Investors can buy or sell ETF shares throughout the trading day at market prices.
ETFs offer diversification, liquidity, and lower fees compared to traditional mutual funds.
Examples of popular ETFs ...
- Q6. What is mortgage back security
- Ans.
A mortgage-backed security is an investment product that is backed by a pool of mortgages.
Mortgage-backed securities are created when a financial institution pools together a group of mortgages and sells them to investors.
Investors receive payments based on the interest and principal payments made by the borrowers of the underlying mortgages.
These securities can be issued by government-sponsored entities like Fannie Ma...
- Q7. What is stock exchange
- Ans.
A stock exchange is a marketplace where securities, such as stocks and bonds, are bought and sold.
Stock exchanges provide a platform for companies to raise capital by issuing shares to investors.
Investors can buy and sell securities through brokers on the exchange.
Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.
Stock exchanges play a crucial role in the economy by facilitating the ...
- Q8. SEBI guidelines
- Q9. What is Repo rate
- Ans.
Repo rate is the rate at which the central bank lends money to commercial banks for short-term periods.
Repo rate is used by central banks to control inflation and liquidity in the economy.
A higher repo rate means higher borrowing costs for banks, leading to lower money supply and lower inflation.
Conversely, a lower repo rate means lower borrowing costs for banks, leading to higher money supply and higher inflation.
Repo...
- Q10. Different between forward and future contact
- Ans.
Forward contracts are customized agreements between two parties to buy or sell an asset at a specified price on a future date, while futures contracts are standardized agreements traded on an exchange.
Forward contracts are private agreements between two parties, while futures contracts are traded on exchanges.
Forward contracts are customizable in terms of quantity, delivery date, and other terms, while futures contract...
- Q11. What is short selling
- Ans.
Short selling is a trading strategy where an investor borrows a security and sells it with the hopes of buying it back at a lower price.
Investor borrows a security they do not own
Sells the borrowed security in the market
Hopes to buy back the security at a lower price to return to the lender
Profits from the difference between selling price and buying price
- Q12. Exel short cut
- Q13. Why do you want to work at Northern Trust?
- Ans.
I want to work at Northern Trust because of its reputation for excellence in financial services and its commitment to employee development.
Northern Trust has a strong reputation for providing top-notch financial services to clients worldwide.
I am impressed by Northern Trust's focus on employee development and growth opportunities.
I believe that working at Northern Trust will allow me to further develop my skills and co...
- Q14. What qualifications and experiences make you a suitable candidate for this position?
- Ans.
I have a strong academic background in finance and relevant internship experience in financial analysis.
Bachelor's degree in Finance
Internship experience in financial analysis
Strong analytical skills
Proficiency in financial modeling
Excellent communication skills
- Q15. What are your strengths and weaknesses?
- Ans.
My strengths include analytical skills, attention to detail, and problem-solving abilities. My weaknesses include public speaking and time management.
Strengths: analytical skills
Strengths: attention to detail
Strengths: problem-solving abilities
Weaknesses: public speaking
Weaknesses: time management
- Q16. Questions relating to vlook up and Advance excel formula
Interview Preparation Tips
I appeared for an interview in May 2025, where I was asked the following questions.
- Q1. Cashir withdrawal
- Q2. And depositbank
- Q3. Live that skdrp
- Q4. People are any more think that
- Q5. Compalsary week
- Q6. Aothar people savings
- Q7. Little thar say
- Q8. Some anboy are
- Q9. All moste little small
- Q10. Big compalsary all most pay this amount
- Q11. Some one thare all thapeple
- Q12. Con you say
- Q13. Do you thing
- Q14. Congratulations
- Q15. Wanted that's are
- Q16. So many people have personal
- Q17. Look like and way coming anything society
- Q18. Socially need complete trust
- Q19. Another in this time
- Q20. Complete teqnicali madr ation
- Q21. Some time acccha
- Q22. Live location stats
- Q23. Complete 💯✅✅✅✅✅✅ a
- Q24. Because of you and your family a happy and prosperous year ahead dear sweet dreams keep smiling your family members happy always with you all together your family members with lots and lots happy birthday...
Selected
I applied via Company Website and was interviewed in Sep 2024. There were 2 interview rounds.
This is a protracted test in which it has section like math, reasoning, english, listening and speaking test.
(7 Questions)
- 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...
- Q2. Structure of stock market
- Ans.
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 ...
- Q3. Questions regarding your summer internship work
- Q4. Non academic questions like what are your personal long term goals, if you could work long hours, rotational shift and all
- Q5. Difference between equity and debt financial instrument (and also have knowledge of different financial instruments)
- Q6. Types of financial derivatives
- Ans.
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...
- Q7. About company and questions on job description
Interview Preparation Tips
- Basics of stock market
- Different financial instruments
- Types of derivatives
- Trading lifecycle
Madhumitha G
I applied via Referral and was interviewed in Jul 2024. There was 1 interview round.
(10 Questions)
- Q1. What is investment banking
- Q2. Different between preference share and equity share capital? What is preferance share capital
- Ans.
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...
- Q3. Different between trial balance and balancesheet
- Ans.
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...
- Q4. What is derivatives and it'it's types
- Ans.
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.
- Q5. Different between future and forward derivatives
- Ans.
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 ...
- Q6. What is hedge fund
- Ans.
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...
- Q7. Example of cash and cash equivalent, and where to record
- Ans.
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
- Q8. What is Dividend? And where should we record in the trail balance?
- Ans.
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...
- Q9. Who receives the dividend?
- Ans.
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.
- Q10. What is capital, and where do we record it?
- Ans.
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...
Nisha Pinto
(2 Questions)
- Q1. What is derivatives
- Q2. What do you kow about capital markets
- Ans.
Capital markets are platforms for buying and selling financial securities, facilitating investment and economic growth.
Capital markets consist of primary and secondary markets, where new securities are issued and existing ones are traded.
Examples of capital market instruments include stocks, bonds, and derivatives.
They play a crucial role in providing companies with access to funding for expansion and operations.
Invest...
Online aptitude tests
I applied via Naukri.com and was interviewed in Jul 2024. There were 2 interview rounds.
(2 Questions)
- Q1. Difference between Java version
- Ans.
Java versions differ in features, performance, and compatibility with libraries and frameworks.
Major differences between Java versions include new features, performance improvements, and compatibility with libraries and frameworks.
For example, Java 8 introduced lambda expressions and the Stream API, while Java 11 added local-variable syntax for lambda parameters.
It is important to consider the specific requirements of ...
- Q2. Difference between MVC and MVVM
- Ans.
MVC separates application into Model, View, Controller. MVVM adds ViewModel to separate UI logic from business logic.
MVC stands for Model-View-Controller, where Model represents data, View represents UI, and Controller handles user input.
MVVM stands for Model-View-ViewModel, where ViewModel acts as a mediator between Model and View, separating UI logic from business logic.
In MVC, the View directly interacts with the Mo...
(2 Questions)
- Q1. Process of new New Application
- Ans.
The process of developing a new application involves planning, designing, coding, testing, and deploying.
Gather requirements from stakeholders
Create wireframes and mockups
Develop code using appropriate technologies
Test application for bugs and performance issues
Deploy application to production environment
- Q2. Firebase FCM setup
Interview Preparation Tips
2. 2nd technical round with senior
Both technical round are good.
After waiting for 1 week, no any response from HR , directly got mail for not selected.
Skills evaluated in this interview
I applied via Company Website and was interviewed in Jul 2024. There was 1 interview round.
(7 Questions)
- Q1. What are derivatives in financial terms?
- Ans.
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 call option gives the holder the right to buy a stock at a specified price within a certain time frame.
Derivatives can be traded on exchanges or over-the-counter (OT...
- Q2. Northern trust
- Q3. What is equity
- Ans.
Equity represents ownership in a company, measured by the value of assets minus liabilities.
Equity is the value of an asset after deducting any liabilities associated with that asset.
It represents ownership in a company and can be in the form of common stock, preferred stock, or retained earnings.
Equity holders have a claim on the company's assets and earnings, and are entitled to voting rights and dividends.
For exampl...
- Q4. What is secondary market
- Ans.
Secondary market is where existing securities are bought and sold by investors, not from the issuing company.
Secondary market provides liquidity to investors by allowing them to buy and sell securities after the initial issuance.
Examples of secondary markets include stock exchanges like NYSE and NASDAQ, where investors trade shares of publicly listed companies.
In the secondary market, prices of securities are determine...
- Q5. What is call and put options and difference
- Ans.
Call and put options are financial contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price within a specific time period.
Call option: gives the holder the right to buy an asset at a specified price before a certain date.
Put option: gives the holder the right to sell an asset at a specified price before a certain date.
Difference: Call options are used by investors w...
- Q6. What is custodian bank
- Ans.
A custodian bank is a financial institution that holds and safeguards assets for individuals, corporations, and other entities.
Provides safekeeping of assets such as stocks, bonds, and other investments
Processes transactions related to the assets held
May also provide additional services such as fund accounting and administration
Examples include State Street Corporation, BNY Mellon, and J.P. Morgan Chase
- Q7. Tell me about investment bank
- Ans.
Investment banks are financial institutions that help companies and governments raise capital through issuing securities and providing financial advisory services.
Provide financial advisory services to clients
Underwrite securities offerings
Facilitate mergers and acquisitions
Trade securities on behalf of clients
Offer research and analysis on financial markets
I applied via Company Website and was interviewed in Oct 2024. There was 1 interview round.
(1 Question)
- Q1. Different questions related to capital markets, what is bond, margin in markets etc
I applied via Company Website and was interviewed in Jul 2024. There were 3 interview rounds.
(2 Questions)
- Q1. Golden rules of accounting
- Q2. What is Derivatives
- Ans.
Derivatives in finance are financial instruments whose value is derived from the value of an underlying asset or index.
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.
Options give the holder the right, but not the obligation, to buy or sell an asset at a specified...
(6 Questions)
- Q1. Golden rules of accounting
- Q2. What is Derivatives
- Ans.
Derivatives in finance are financial instruments whose value is derived from the value of an underlying asset, index, or rate.
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.
Options give the holder the right, but not the obligation, to buy or sell an asset at a sp...
- Q3. What is BRS
- Ans.
BRS stands for Bank Reconciliation Statement, which is a document that compares the bank's records with the company's records of its checking account balance.
BRS helps in identifying discrepancies between the two sets of records
It ensures that the company's financial statements are accurate and complete
Examples of items on a BRS include outstanding checks, deposits in transit, bank errors, and service charges
- Q4. What is Bond
- Ans.
A bond is a debt investment where an investor loans money to an entity (corporate or governmental) for a defined period at a fixed interest rate.
Bonds are issued by governments, municipalities, corporations, and other entities to raise capital.
Investors purchase bonds as a form of fixed-income investment.
Bonds have a maturity date when the principal amount must be repaid to the bondholder.
Interest payments are made per...
- Q5. What is Investment Banking
- Ans.
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 initial public offerings (IPOs)
Executing trades and managing risk for clients
- Q6. About Northern Trust
(2 Questions)
- Q1. Basics on resume
- Q2. Basic on resume
(2 Questions)
- Q1. Ask about why northern trust
- Q2. Bad experience all about apart from resume and also not asked technical question
Interview Preparation Tips
Top trending discussions
Northern Trust Interview FAQs
The duration of Northern Trust interview process can vary, but typically it takes about less than 2 weeks to complete.
Tell us how to improve this page.
Northern Trust Interviews By Designations
- Northern Trust Analyst Interview Questions
- Northern Trust Senior Analyst Interview Questions
- Northern Trust Technical Coordinator Interview Questions
- Northern Trust Financial Analyst Interview Questions
- Northern Trust Associate Consultant Interview Questions
- Northern Trust Analyst 1 Interview Questions
- Northern Trust Senior Associate Interview Questions
- Northern Trust Team Lead Interview Questions
- Show more
Interview Questions for Popular Designations
- Analyst Interview Questions
- Senior Analyst Interview Questions
- Financial Analyst Interview Questions
- Technical Coordinator Interview Questions
- Associate Consultant Interview Questions
- Senior Executive Interview Questions
- Data Analyst Interview Questions
- Senior Software Engineer Interview Questions
- Show more
Overall Interview Experience Rating
based on 127 interview experiences
Difficulty level
Duration
Interview Questions from Similar Companies
Northern Trust Reviews and Ratings
based on 1.2k reviews
Rating in categories
|
Senior Analyst
1.9k
salaries
|  ₹5.1 L/yr - ₹10 L/yr |
|
Technical Coordinator
889
salaries
| ₹8.4 L/yr - ₹14 L/yr |
|
Analyst II
661
salaries
| ₹3.2 L/yr - ₹6.8 L/yr |
|
Financial Analyst
588
salaries
| ₹2.8 L/yr - ₹7.2 L/yr |
|
Analyst
567
salaries
| ₹2.5 L/yr - ₹6 L/yr |
Wells Fargo
HSBC Group
Cholamandalam Investment & Finance
Citicorp
- Home >
- Interviews >
- Northern Trust Interview Questions
