State Street Corporation Analyst Interview Questions and Answers

Derivatives are financial instruments that derive their value from an underlying asset or security.

• Types of derivatives include futures, options, swaps, and forwards.

• Futures are contracts to buy or sell an asset at a predetermined price and date.

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

• Swaps involve exchanging cash flows based on different financial instruments.

• Forwards are similar to futures, but are ...read more

Capital markets are platforms where companies and governments can raise funds by selling securities to investors.

• Primary market: where new securities are issued for the first time

• Secondary market: where existing securities are traded among investors

• Equity market: where stocks are traded

• Debt market: where bonds and other debt securities are traded

• Foreign exchange market: where currencies are traded

• Commodity market: where commodities like gold, oil, and agricultural products ar...read more

Confirmation and affirmation are processes of verifying or validating something.

• Confirmation is the process of verifying or validating something that has been previously agreed upon or discussed.

• Affirmation is the process of validating or confirming something that has been previously stated or believed.

• Confirmation and affirmation are often used interchangeably, but they have slightly different meanings depending on the context.

• Examples of confirmation include confirming a re...read more

Trade life cycle involves various stages from order placement to settlement.

• The trade is initiated by the client placing an order with the broker

• The broker then sends the order to the exchange for execution

• Once the order is executed, the trade is confirmed and matched

• The settlement process involves the exchange of cash and securities

• Finally, the trade is cleared and settled

• Example: A client places an order to buy 100 shares of Apple stock. The broker sends the order to the ex...read more

Capital market is a financial market where individuals and institutions trade financial securities.

• Capital market facilitates the buying and selling of long-term debt and equity instruments.

• It includes stock markets and bond markets.

• Investors can buy and sell securities such as stocks, bonds, and derivatives in the capital market.

• Companies raise capital by issuing stocks or bonds to investors in the capital market.

• Capital market plays a crucial role in the economy by channeli...read more