SS&C TECHNOLOGIES Associate Interview Questions, Process, and Tips

Q1. What are Hedge Funds?
Ans. 
Hedge funds are alternative investment vehicles that use pooled funds from accredited investors to generate high returns.
• Hedge funds are managed by professional fund managers.

• They use a variety of investment strategies, including leveraging, short-selling, and derivatives trading.

• Hedge funds are only available to accredited investors due to their high-risk nature.

• They are not regulated by the SEC like mutual funds.

• Exam...read more
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Q2. What are OTC Derivatives?
Ans. 
OTC Derivatives are privately negotiated financial contracts between two parties, not traded on an exchange.
• OTC stands for Over-The-Counter

• OTC Derivatives are customized contracts between two parties

• They are not traded on an exchange

• They are used for hedging, speculation, and arbitrage

• Examples include swaps, options, and forwards
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Q3. What happens when we short securities?
Ans. 
Shorting securities involves borrowing and selling securities in the hopes of buying them back at a lower price.
• Shorting is a bet that the price of a security will decrease.

• Shorting involves borrowing securities from a broker and selling them on the market.

• If the price of the security decreases, the short seller can buy it back at a lower price and return it to the broker, making a profit.

• If the price of the security i...read more
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Q4. What happens when we short put?
Ans. 
Shorting a put option involves selling a put option with the expectation that the price of the underlying asset will rise.
• Shorting a put option is a bearish strategy

• The seller of the put option is obligated to buy the underlying asset at the strike price if the buyer decides to exercise the option

• Shorting a put option can be profitable if the price of the underlying asset rises or remains stable

• However, if the price of...read more
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Q5. What are CDS? Why should any company underwrite CDS?
Ans. 
CDS are Credit Default Swaps, a type of financial derivative used to transfer credit risk from one party to another.
• CDS are contracts between two parties where one party agrees to compensate the other in case of a credit event, such as default or bankruptcy, of a third party.

• Companies underwrite CDS to hedge against the risk of default by a borrower or counterparty, or to speculate on the creditworthiness of a particul...read more
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Q6. What is NAV? How to calculate NAV?
Ans. 
NAV stands for Net Asset Value. It is the value of a mutual fund's assets minus its liabilities.
• NAV is calculated by dividing the total value of a mutual fund's assets by the number of outstanding shares.

• NAV is calculated at the end of each trading day.

• NAV is used to determine the price at which investors can buy or sell shares in a mutual fund.

• NAV can be affected by changes in the value of the underlying assets, as we...read more
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Q1. Types of Corporate actions
Ans. 
Corporate actions refer to events initiated by a public company that impact its shareholders and securities.
• Dividends - distribution of profits to shareholders

• Stock splits - dividing existing shares into multiple shares

• Mergers and acquisitions - combining two companies into one

• Rights issues - offering existing shareholders the right to buy additional shares at a discounted price

• Bonus issues - issuing free additional sh
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Q2. Types of security
Ans. 
Types of security include physical, network, application, and data security.
• Physical security involves measures like locks, security guards, and surveillance cameras to protect physical assets.

• Network security focuses on protecting the organization's network infrastructure from unauthorized access or attacks.

• Application security involves securing software applications from threats like malware, SQL injection, and cross...read more
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Q3. Listed and unlisted security
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Q4. Derivatives , types
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Q5. Types of bonds ,
Ans. 
Types of bonds include corporate bonds, government bonds, municipal bonds, and savings bonds.
• Corporate bonds are issued by corporations to raise capital.

• Government bonds are issued by governments to finance public projects.

• Municipal bonds are issued by local governments to fund infrastructure projects.

• Savings bonds are issued by the government and are considered low-risk investments.
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Q6. Types of swaps,
Ans. 
Swaps are financial derivatives where two parties exchange cash flows or other financial instruments.
• Interest rate swaps involve exchanging fixed interest rate payments for floating rate payments.

• Currency swaps involve exchanging cash flows in different currencies.

• Commodity swaps involve exchanging cash flows based on the price of commodities.

• Credit default swaps involve transferring the credit risk of a bond or loan f
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Q1. Tell me about yourself Family background Cds Stock spilt Amortization Zero coupon bond Journal entry for prepaid rent High water mark Different between mf and hf Nav American options Spin off Put o...read more
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Q1. Tell me about yourself
Ans. 
I am a dedicated and hardworking individual with a passion for learning and growth.
• Education background

• Work experience

• Skills and strengths

• Career goals
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Q2. What is reconciliation
Ans. 
Reconciliation is the act of restoring harmony or resolving conflicts between individuals or groups.
• Reconciliation involves acknowledging past wrongs and working towards forgiveness and understanding.

• It often requires open communication, empathy, and a willingness to compromise.

• Examples include reconciling with a friend after a disagreement, or countries seeking reconciliation after a war.

• Reconciliation can also refer ...read more
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Q3. What do you check when you trade in equity stock in market
Ans. 
When trading in equity stock market, I check various factors such as company financials, market trends, news, and technical analysis.
• Company financials - revenue, profit margins, debt levels

• Market trends - overall market direction, sector performance

• News - company announcements, industry news

• Technical analysis - price movements, volume trends
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Q4. What is options
Ans. 
Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specific price within a specific time period.
• Options can be used for speculation, hedging, or generating income.

• There are two types of options: call options (which give the holder the right to buy an asset) and put options (which give the holder the right to sell an asset).

• Options have an expiration da...read more
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It was related to work based questions only but training was provided as it came on our campus

Q1. What is MBS? All related to money market concepts
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Q2. What is ABS? All related to derivatives
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