Principal Global Investors Analyst Interview Questions and Answers

Q1. What are diiferent types of securities?
Ans. 
Different types of securities include stocks, bonds, options, and mutual funds.
• Stocks represent ownership in a company

• Bonds are debt securities issued by governments or corporations

• Options give the holder the right to buy or sell an asset at a specified price

• Mutual funds pool money from multiple investors to invest in a diversified portfolio

• Other types include ETFs, futures, and derivatives
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Q2. What is Capital markets?
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Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold.
• Capital markets facilitate the buying and selling of long-term financial instruments such as stocks and bonds.

• They provide a platform for companies and governments to raise funds for various projects and initiatives.

• Investors can trade securities in the capital markets to earn returns on their investments.

• Examples...read more
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Q3. What are Corporate actions?
Ans. 
Corporate actions are events initiated by a public company that can affect its stock price or ownership structure.
• Corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• These actions can impact shareholders by changing the value of their investments or the number of shares they own.

• Investors need to stay informed about corporate actions to make informed decisions about th
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Q4. If bonus declared by company then its effect on company's balance sheet (basically journal)?
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Q5. If bond fv 100 issued at discount at 98 and giving fixed return @ 10%, then what is actual rate of return is it more or less than 10% and method is used for its calculation what it is called?
Ans. 
The actual rate of return is more than 10% due to the bond being issued at a discount. The method used for its calculation is Yield to Maturity (YTM).
• Bond issued at discount means the actual rate of return is higher than the fixed rate.

• Yield to Maturity (YTM) is used to calculate the actual rate of return on a bond.

• YTM takes into account the bond's current market price, par value, coupon payments, and time to maturity.
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Q6. If company declared dividend but not paid, then its effect on balance sheet of holder of shares?
Ans. 
If a company declares a dividend but does not pay it, the balance sheet of the shareholder will show an increase in their retained earnings and a corresponding decrease in their cash or assets.
• The shareholder's equity will increase by the amount of the declared dividend.

• The company's liabilities will also increase by the same amount until the dividend is paid.

• The shareholder will see an increase in their retained earni...read more
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Q7. Mutual fund boughts shares, its journal on trade date and settlement date?
Ans. 
Mutual fund buys shares on trade date and settles on settlement date.
• Mutual fund purchases shares on the trade date, which is the date the transaction is executed.

• Settlement date is the date on which the mutual fund actually pays for the shares and receives ownership.

• The journal entry on the trade date would debit the investment account and credit the cash account.

• The journal entry on the settlement date would reverse ...read more
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Q8. Types of Investment opportunities?
Ans. 
Investment opportunities include stocks, bonds, real estate, commodities, and startups.
• Stocks - buying shares of a company

• Bonds - lending money to a corporation or government

• Real estate - purchasing property for rental income or appreciation

• Commodities - investing in physical goods like gold or oil

• Startups - funding early-stage companies in exchange for equity
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Q9. What is derivatives and different 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.

• Futures contracts obligate the buyer to purchase an asset at a specific price on a future date.

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified timeframe.

• Swaps involve the e...read more
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Only we can determine how easy it was.

Q1. Can you tell me about yourself?
Ans. 
I am a dedicated and detail-oriented analyst with a strong background in data analysis and problem-solving.
• I have a Bachelor's degree in Statistics from XYZ University.

• I have 3 years of experience working as a data analyst at ABC Company.

• I am proficient in using statistical software such as R and Python for data analysis.

• I have a proven track record of delivering actionable insights to drive business decisions.
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Q2. They ask about your work experience?
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Q3. Based on your work experience, what questions do you expect to be asked?
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Q1. What prompted you to change your job?
Ans. 
I changed my job to seek new challenges and opportunities for growth.
• Desire for new challenges and growth

• Opportunity for career advancement

• Seeking better work-life balance

• Company restructuring or downsizing

• Relocation to a new city
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Q1. What platforms have you used for this process in the past?
Ans. 
I have used platforms such as Excel, Tableau, and Power BI for data analysis in the past.
• Excel

• Tableau

• Power BI
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Q1. Would you be willing to work for 14 hours if required?
Ans. 
Yes, I am willing to work for 14 hours if required.
• I am dedicated and committed to my work

• I understand the importance of meeting deadlines and delivering results

• I am willing to put in extra hours when necessary to ensure success
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Q1. Difference between rank & dense rank
Ans. 
Rank assigns unique numbers to each row based on the order specified, while dense rank assigns consecutive numbers without gaps.
• Rank leaves gaps in the ranking sequence if there are ties, while dense rank does not

• Rank function is used to assign a unique rank to each row, while dense rank function is used to assign a unique rank to each distinct row

• For example, if there are two rows with the same value and rank 1, the n...read more
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Q2. Given two tables Tell how many values would be there for left right inner outer join
Ans. 
The number of values in different types of joins depends on the relationship between the tables.
• In a left join, all values from the left table are included along with matching values from the right table. The number of values will be equal to the number of rows in the left table.

• In a right join, all values from the right table are included along with matching values from the left table. The number of values will be equ...read more
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Q3. Find the newest customer id for every product
Ans. 
Use SQL query to find the newest customer id for every product
• Use GROUP BY clause to group by product

• Use MAX() function to find the newest customer id for each product

• Join the tables if necessary
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Insurance based questions

Mostly on insurance and accounting

Q1. OOPS abstraction
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Q2. Palindrome question
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Q1. What is your current ctc
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Q2. What is your current role
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Reasoning , SQL and probability

Q1. SQL queries and python
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Q2. Reasoning and guesstimate
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