SBI Securities Interview Questions and Answers for Freshers

A demat account is an account that holds shares and securities in electronic form, making trading and investing easier.

• Demat account stands for dematerialized account, where securities are held electronically

• Stocks represent ownership in a company, while shares are units of ownership in a company

• Shares can be bought and sold on stock exchanges like NYSE, NASDAQ, etc.

• Investors can buy stocks and shares through their demat account

SBI Securities is a subsidiary of State Bank of India offering online trading services in equities, derivatives, mutual funds, and IPOs.

• SBI Securities is a leading brokerage firm in India

• It offers online trading services for equities, derivatives, mutual funds, and IPOs

• It is a subsidiary of State Bank of India

• SBI Securities provides research reports and market analysis to its clients

Mutual Fund is a type of investment where money is pooled from multiple investors to invest in stocks, bonds, and other securities.

• Mutual funds are managed by professional fund managers

• Investors can buy and sell mutual fund units at the current net asset value (NAV)

• Mutual funds offer diversification and liquidity to investors

• Examples of mutual fund companies include Vanguard, Fidelity, and BlackRock

SIP stands for Systematic Investment Plan, a method of investing in mutual funds regularly over a period of time.

• SIP allows investors to invest small amounts of money at regular intervals

• Investors can choose the frequency of investment (monthly, quarterly, etc.)

• SIP helps in averaging out the cost of investment over a period of time

• It is a disciplined approach to investing and helps in achieving long-term financial goals

• Example: Investing Rs. 5000 every month in a mutual fund ...read more

Stocks are shares of ownership in a company that represent a claim on its assets and earnings.

• Stocks are financial instruments that are bought and sold on stock exchanges.

• Investors buy stocks to become partial owners of a company and potentially earn a share of its profits.

• Stocks can be categorized into different types such as common stocks and preferred stocks.

• Stock prices can fluctuate based on various factors including company performance, market conditions, and investor s...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

• Mutual funds are managed by professional fund managers

• Investors buy shares in the mutual fund and the value of their investment is based on the performance of the underlying securities

• Mutual funds offer diversification and convenience for investors

• There are different types of mutual funds, such as equity funds, bond funds, and...read more

BGP attributes are used to influence the path selection process in BGP routing.

• BGP attributes include AS_PATH, NEXT_HOP, LOCAL_PREF, etc.

• AS_PATH attribute shows the path the route has taken through ASes.

• NEXT_HOP attribute specifies the next hop IP address for the route.

• LOCAL_PREF attribute is used to influence outbound traffic.

• Examples of BGP attributes manipulation include AS_PATH prepending and setting LOCAL_PREF.

A route reflector is a feature in BGP that helps reduce the number of IBGP peerings required in a network.

• Route reflectors help in reducing the number of IBGP peerings in a network by allowing a route reflector to reflect routes to other routers.

• They are used in large-scale networks to avoid the full mesh IBGP requirement.

• Route reflectors can be configured in a hierarchy to further optimize route reflection in the network.