What is high water mark in a hedge fund, corporate actions (split, spin off) , Journal entries, Forwards, options, in the money option etc.

Question

Accepted Answer

High water mark, corporate actions, journal entries, forwards, options, and in the money options are all important concepts in hedge funds.

High water mark refers to the highest peak in a hedge fund's net asset value (NAV) history.
Corporate actions such as splits and spin-offs can affect the value of a hedge fund's holdings.
Journal entries are used to record transactions in a hedge fund's accounting system.
Forwards are contracts that allow investors to buy or sell an asset at a predetermined price in the future.
Options give investors the right, but not the obligation, to buy or sell an asset at a predetermined price.
In the money options are options that would result in a profit if exercised at the current market price.

Top SS&C TECHNOLOGIES Senior Associate interview questions & answers