40+ Sharekhan Interview Questions and Answers

This is a set of questions related to finance and stock markets.

• NSE and BSE are the two major stock exchanges in India.

• Derivative market is a financial market where investors can trade in financial instruments such as futures, options, and swaps.

• Risk hedging techniques include diversification, options trading, and futures trading.

• FPO stands for Follow-on Public Offer, which is a process by which a company raises additional capital by issuing new shares to the public.

I will use my communication skills and market research to identify potential customers and create targeted marketing campaigns.

• Conduct market research to identify potential customers

• Develop targeted marketing campaigns to reach specific customer segments

• Utilize social media and other digital marketing channels to increase brand awareness

• Attend industry events and conferences to network and generate leads

• Collaborate with sales team to ensure customer satisfaction and retention

To convince clients to invest in the share market, highlight potential returns, diversification benefits, and long-term growth opportunities.

• Educate clients on the potential returns and benefits of investing in the share market.

• Highlight the benefits of diversification to reduce risk in their investment portfolio.

• Emphasize the long-term growth opportunities in the share market compared to other investment options.

• Provide examples of successful investments in the past to showc...read more

The stock market is a platform where shares of publicly traded companies 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

• Stock prices are influenced by various factors such as company performance, economic conditions, and investor sentiment

• Investors can make profits by buying stocks at a lower price and selling them at a higher price

• There are diff...read more

Technical analysis involves analyzing historical price and volume data to predict future price movements. Fundamental analysis involves evaluating a company's financial health and performance. Right issue is when a company offers existing shareholders the right to buy additional shares at a discounted price. Buyback is when a company repurchases its own shares from the market.

• Technical analysis uses charts and indicators to identify patterns and trends in price movements.

• Fund...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in securities. SIP is a systematic investment plan where investors regularly invest a fixed amount. PMS is a portfolio management service where a professional manages the portfolio on behalf of the investor.

• Mutual funds pool money from multiple investors to invest in securities

• SIP is a systematic investment plan where investors regularly invest a fixed amount

• PMS is a portfolio management se...read more

The past returns of the funds vary depending on the fund and the time period.

• Past returns can be found in the fund's prospectus or on financial websites.

• Returns can vary greatly depending on the type of fund and the market conditions.

• It's important to consider past returns when making investment decisions, but they are not a guarantee of future performance.

Answers to finance-related questions

• EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's profitability.

• Stock turnover ratio is a measure of how quickly a company sells its stock. It is calculated by dividing the cost of goods sold by the average inventory.

• IPO stands for Initial Public Offering. It is the first time a company's stock is offered for sale to the public. Mutual funds are investment vehicles that pool mo...read more

Sharekhan Ltd. offers a range of financial services including online trading, investment advisory, research reports, and wealth management.

• Online trading platform for stocks, commodities, and currencies

• Investment advisory services to help clients make informed decisions

• Research reports on market trends and stock recommendations

• Wealth management services to help clients grow and protect their assets

Yes, I have computer knowledge.

• Proficient in Microsoft Office Suite

• Familiar with CRM software such as Salesforce

• Experience with data analysis tools like Excel and Tableau

The stock market is a platform where publicly traded companies sell shares to investors, allowing them to buy and sell ownership in the company.

• Stock market is a place where stocks, bonds, and other securities are traded

• Investors buy and sell stocks to make a profit

• Stock prices are influenced by various factors such as company performance, economic indicators, and global events

• Stock market indices such as the Dow Jones Industrial Average and S&P 500 track the performance of t...read more

A bluechip fund is a type of mutual fund that invests in well-established, financially stable, and large-cap companies.

• Bluechip funds focus on investing in companies with a proven track record of consistent growth and profitability.

• These funds typically invest in companies that are leaders in their respective industries.

• Bluechip funds are considered less risky compared to other types of mutual funds due to the stability of the companies they invest in.

• Investors looking for lo...read more

Some bank nifty bank names according to weightage include HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and State Bank of India.

• HDFC Bank

• ICICI Bank

• Axis Bank

• Kotak Mahindra Bank

• State Bank of India

Sharekhan is a full-service stockbroking firm in India offering a wide range of financial products and services.

• Sharekhan is a subsidiary of BNP Paribas, a leading global banking group.

• It offers services such as online trading, research reports, mutual funds, and insurance.

• Sharekhan has a network of over 2,500 branches across India.

• It caters to both individual investors and institutional clients.

• Sharekhan is known for its user-friendly trading platforms and customer service.

Trading involves buying and selling financial instruments such as stocks, bonds, and commodities in order to make a profit.

• Trading is the act of buying and selling financial instruments such as stocks, bonds, commodities, and currencies.

• Traders aim to make a profit by taking advantage of price fluctuations in the market.

• Different types of trading include day trading, swing trading, and long-term investing.

• Trading can be done through various platforms such as stock exchanges, ...read more

Value discovery fund is a type of mutual fund that invests in undervalued stocks with potential for growth.

• Invests in undervalued stocks

• Seeks to identify stocks with potential for growth

• Long-term investment strategy

• May have higher risk but potential for higher returns

• Example: Tata Equity P/E Fund

Equity is ownership in a company, call option is the right to buy a stock at a certain price, put option is the right to sell a stock at a certain price.

• Equity represents ownership in a company and can be in the form of stocks or shares.

• Call option is a contract that gives the holder the right, but not the obligation, to buy a stock at a certain price within a specified period.

• Put option is a contract that gives the holder the right, but not the obligation, to sell a stock at...read more

Financial securities are tradable assets representing financial value, such as stocks, bonds, and options.

• Financial securities are instruments that can be bought, sold, or traded on financial markets.

• They include stocks, bonds, options, futures, and other derivatives.

• Stocks represent ownership in a company, while bonds represent debt owed by a company or government.

• Options give the holder the right, but not the obligation, to buy or sell an asset at a specified price within a...read more

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 specified price before or on a specified date.

• Futures are co...read more

OTM, ATM, and ITM options refer to Out of The Money, At The Money, and In The Money options respectively.

• OTM options have strike prices that are unfavorable compared to the current market price.

• ATM options have strike prices that are closest to the current market price.

• ITM options have strike prices that are favorable compared to the current market price.

The market is currently stable with moderate growth.

• The demand for commercial real estate is increasing.

• Investors are showing interest in the market.

• Rental rates are steadily increasing.

• The market is expected to continue its growth in the near future.

Technical indicators are mathematical calculations based on historical price, volume, or open interest data used to forecast future price movements in trading.

• Technical indicators help traders make informed decisions by providing insights into market trends and potential price movements.

• Examples of technical indicators include moving averages, relative strength index (RSI), and Bollinger Bands.

• Traders use technical indicators to identify overbought or oversold conditions, tre...read more

The ideal credit cycle is typically around 30 days, allowing enough time for customers to pay invoices without causing cash flow issues.

• Ideal credit cycle is around 30 days to balance timely payments and cash flow.

• Shorter credit cycles may improve cash flow but could deter customers.

• Longer credit cycles may attract more customers but can strain cash flow.

• Consider industry standards and customer payment habits when determining credit cycle.

• Regularly review and adjust credit cy...read more

Equity carries less risk compared to debt.

• Equity represents ownership in a company, while debt represents borrowing money that needs to be repaid with interest.

• Equity holders have a claim on assets and earnings of a company after all debts are paid off, making it less risky.

• Debt holders have a priority claim on assets and earnings, and failure to repay debt can lead to bankruptcy.

• Equity investments are subject to market fluctuations, but debt investments have a fixed interest...read more

A stock broker is a professional who buys and sells stocks on behalf of clients in exchange for a fee or commission.

• Stock brokers facilitate the buying and selling of stocks on various stock exchanges.

• They provide investment advice and recommendations to clients based on their financial goals and risk tolerance.

• Stock brokers must be licensed and adhere to strict regulations set by financial authorities.

• Examples of stock brokers include Charles Schwab, TD Ameritrade, and E*TRA...read more

Futures and options are financial derivatives that derive their value from an underlying asset.

• Futures are contracts to buy or sell an asset at a specified price on a future date.

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

• Both futures and options are used for hedging, speculation, and arbitrage in financial markets.

Bank Nifty index is a benchmark index that tracks the performance of the banking sector in India.

• Bank Nifty index is composed of the most liquid and large capitalized banking stocks listed on the National Stock Exchange (NSE) of India.

• It provides investors and traders with a benchmark to measure the performance of the banking sector as a whole.

• Bank Nifty index futures and options are actively traded on the NSE for hedging and speculation purposes.

Share market is a platform where buying and selling of company stocks and securities takes place.

• Share market allows companies to raise capital by selling shares to investors

• Investors can buy and sell shares of publicly traded companies

• Prices of shares fluctuate based on supply and demand in the market

• Investors can make profits by selling shares at a higher price than they bought them for

Some midcap companies are those with market capitalization between $2 billion and $10 billion.

• Adani Enterprises Ltd.

• Bajaj Holdings & Investment Ltd.

• Havells India Ltd.

• Muthoot Finance Ltd.

• Voltas Ltd.

Market cap, short for market capitalization, is the total value of a company's outstanding shares of stock.

• Market cap is calculated by multiplying the current stock price by the total number of outstanding shares.

• It is used to determine the size of a company and its relative value compared to other companies.

• Market cap is an important metric for investors to consider when making investment decisions.

• For example, if a company has 1 million shares outstanding and the stock pric...read more

Equity market is a platform where stocks of publicly traded companies are bought and sold.

• Equity market is also known as stock market or share market.

• It provides a way for companies to raise capital by selling shares to investors.

• Investors can buy and sell shares of publicly traded companies through stock exchanges.

• The value of shares is determined by supply and demand, and can fluctuate based on various factors such as company performance, economic conditions, and global eve...read more

I am interested in the field of sales and marketing.

• Sales

• Marketing

• Customer Service

• Advertising

The latest lot size for Nifty is 75.

• The latest lot size for Nifty is 75.

• Lot size refers to the minimum quantity or number of shares that can be traded in a single transaction.

• Knowing the lot size is important for calculating the total cost of a trade.

Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

• Cost of capital is the weighted average cost of debt and equity used by a company to finance its operations.

• It represents the minimum return that a company must earn on its investments to satisfy its shareholders or investors.

• It is used in capital budgeting to evaluate new projects or investments by comparing the expected return to the cost of capit...read more

Yes, I am familiar with derivatives strategy and have experience in implementing various strategies.

• I have knowledge of different types of derivatives such as options, futures, and swaps

• I have experience in using derivatives for hedging, speculation, and arbitrage

• I am familiar with risk management techniques using derivatives

• I have implemented strategies like covered calls, straddles, and spreads

Expectations are beliefs or hopes about what will happen or what someone will do.

• Expectations can be realistic or unrealistic

• Expectations can be communicated or uncommunicated

• Expectations can be met or unmet

• Expectations can affect relationships positively or negatively

A factsheet is a document that provides information about a mutual fund's performance, holdings, fees, and other important details.

• Factsheets are typically updated on a monthly or quarterly basis.

• They include information on the fund's investment strategy and objectives.

• Factsheets also provide a breakdown of the fund's holdings by asset class, sector, and geographic region.

• They disclose the fund's fees and expenses, including the expense ratio and any sales charges.

• Factsheets ...read more

Stock market is a platform where securities like stocks, bonds, and commodities are bought and sold.

• Stock market allows companies to raise capital by issuing stocks to investors.

• Investors can buy and sell stocks to potentially earn profits.

• Stock prices are influenced by various factors like company performance, economic conditions, and market trends.

• Examples of stock exchanges include NYSE, NASDAQ, and London Stock Exchange.

To create a future vision mission, one must establish long-term goals and objectives that align with the organization's values and purpose.

• Define the organization's core values and purpose

• Set long-term goals and objectives that align with the values and purpose

• Create a strategic plan to achieve the goals and objectives

• Communicate the future vision mission to all stakeholders

• Regularly review and adjust the mission as needed

A financial plan involves setting financial goals, creating a budget, and investing wisely.

• Identify short-term and long-term financial goals

• Create a budget to track income and expenses

• Develop a savings plan to achieve goals

• Invest in a diversified portfolio based on risk tolerance and goals

• Regularly review and adjust the plan as needed

I have extensive experience with mutual funds.

• Managed mutual fund portfolios for clients

• Analyzed mutual fund performance and made recommendations

• Implemented mutual fund investment strategies

• Stayed up-to-date on industry trends and regulations

• Worked with various types of mutual funds, including equity, fixed income, and balanced funds