RR Financial Consultants Wealth Manager Interview Questions and Answers

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.

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

• They can be used to manage risk or to gain exposure to different markets.

• Derivatives can be complex and require specialized knowledge to use effectively.

Index market refers to a market where investors can buy and sell securities that track a specific index.

• Index market allows investors to gain exposure to a broad market or specific sector

• Examples of index markets include S&P 500, NASDAQ, and Dow Jones Industrial Average

• Investors can buy index funds or exchange-traded funds (ETFs) to gain exposure to the index market

• Index market is often used as a benchmark to measure t...read more