FunnL Interview Questions and Answers

Trade Life Cycle refers to the process of a trade from initiation to settlement, involving various steps and dates.

• Trade initiation: Trade is proposed and agreed upon by parties involved.

• Trade execution: Trade is executed on the agreed terms.

• Trade confirmation: Parties confirm the details of the trade.

• Trade settlement: Actual exchange of securities and payment takes place.

• Trade reconciliation: Ensuring all details match between parties' records.

• Trade lifecycle dates can vary ...read more

Accrued income is revenue earned but not yet received. Journal entry includes debiting accrued income and crediting income account.

• Accrued income is revenue that has been earned but not yet received.

• It is recorded as a current asset on the balance sheet.

• Journal entry for accrued income involves debiting accrued income and crediting the income account.

• Example: A company provides services to a client in December but does not receive payment until January. The revenue earned in ...read more

NAV stands for Net Asset Value, which is the value of a fund's assets minus its liabilities, divided by the number of shares outstanding.

• NAV is used to determine the price of a mutual fund or ETF.

• Formula: NAV = (Total assets - Total liabilities) / Number of shares outstanding

• For example, if a mutual fund has total assets of $100 million, total liabilities of $10 million, and 10 million shares outstanding, the NAV would be ($100M - $10M) / 10M = $9 per share.

SEBI stands for Securities and Exchange Board of India. It is the regulatory body for the securities market in India.

• SEBI regulates the securities market by overseeing the activities of stock exchanges, brokers, merchant bankers, and other intermediaries.

• It protects the interests of investors and promotes the development of the securities market.

• SEBI also regulates takeover of companies, insider trading, and fraudulent practices in the securities market.

• It formulates rules an...read more

Shares represent ownership in a company and entitle the shareholder to a portion of the company's profits and voting rights.

• Shares are units of ownership in a company

• Shareholders are entitled to dividends based on the company's profits

• Shareholders have voting rights in company decisions

• Shares can be bought and sold on stock exchanges

• Common types of shares include common stock and preferred stock