Accumenta Consulting Interview Questions and Answers

Stocks and shares represent ownership in a company and can be bought and sold on the stock market.

• Stocks and shares are a way for companies to raise capital by selling ownership stakes to investors.

• Investors can buy and sell stocks and shares on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ.

• The value of stocks and shares can fluctuate based on a variety of factors, including company performance, market trends, and global events.

• Investors can earn money fro...read more

Equity shares represent ownership in a company while preference shares have priority in receiving dividends and assets in case of liquidation.

• Equity shares represent ownership in a company while preference shares have priority in receiving dividends and assets in case of liquidation.

• Equity shareholders have voting rights while preference shareholders do not.

• Preference shares have a fixed dividend rate while equity shares do not.

• Preference shares are less risky than equity sha...read more

A custodian in derivatives is a financial institution that holds securities on behalf of clients to ensure their safekeeping and facilitate trading.

• Custodians play a crucial role in the safekeeping of assets such as stocks, bonds, and other securities.

• They also provide services such as settlement of trades, collection of dividends and interest, and reporting on holdings.

• Examples of custodians in the derivatives market include banks, brokerage firms, and specialized custodian ...read more

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples include futures, options, swaps, and forwards.

• They can be traded on exchanges or over-the-counter.

• Derivatives can be complex and involve high levels of risk.

• They are widely used in the financial industry.

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

• Trade initiation: The trade is proposed and agreed upon by both parties.

• Trade execution: The trade is carried out through a broker or trading platform.

• Trade confirmation: Both parties confirm the details of the trade.

• Trade settlement: The trade is finalized and funds or securities are exchanged.

• Post-trade activities: Any necessary reconciliations, reporting, and record-keeping are complete...read more