100+ Interview Questions and Answers

State Street Corporation is a leading financial services company known for its global presence and expertise in asset management and custody services.

• State Street Corporation is one of the largest custodian banks in the world, providing services to institutional investors and asset managers.

• The company has a strong global presence with offices in over 100 locations worldwide.

• State Street is known for its expertise in asset management, offering a wide range of investment solut...read more

Assets are resources owned by a company, while liabilities are obligations or debts. They have subcategories and formulas to determine their values.

• Assets are economic resources that provide future benefits to a company, such as cash, inventory, or property.

• Liabilities are obligations or debts that a company owes to external parties, such as loans or accounts payable.

• Subcategories of assets include current assets (e.g., cash, accounts receivable) and non-current assets (e.g.,...read more

Management fees and performance fees are charges levied by investment managers for managing funds and achieving certain performance benchmarks.

• Management fees are ongoing charges that cover the cost of managing the fund, including administrative expenses, research, and investment management.

• Performance fees are additional charges based on the fund's performance relative to a benchmark or a predetermined hurdle rate.

• Management fees are typically calculated as a percentage of t...read more

Capstock refers to the total value of a company's outstanding shares of stock.

• Capstock is the market value of a company's equity capital.

• It represents the total value of all the company's shares of stock.

• Capstock can be calculated by multiplying the current market price per share by the total number of outstanding shares.

• It is an important metric for investors and analysts to assess the overall value of a company.

• Subscription refers to the process of purchasing new shares of ...read more

NAV calculation is the process of determining the net asset value of a fund, which represents the value per share/unit.

• NAV is calculated by subtracting the fund's liabilities from its assets.

• Assets include investments, cash, and receivables, while liabilities include expenses and payables.

• NAV = (Total Assets - Total Liabilities) / Total Shares/Units Outstanding.

• NAV is typically calculated on a daily basis for mutual funds and other investment vehicles.

• Example: If a fund has $...read more

Accounting rules are guidelines and principles that govern the recording and reporting of financial transactions.

• Accounting rules ensure consistency and accuracy in financial reporting.

• They provide a framework for recording and classifying transactions.

• Modern accounting rules are often based on international standards, such as the International Financial Reporting Standards (IFRS) or the Generally Accepted Accounting Principles (GAAP) in the United States.

• Traditional accounti...read more

Corporate action refers to any event initiated by a publicly traded company that impacts its shareholders.

• Corporate actions can include stock splits, dividends, mergers and acquisitions, rights issues, and spin-offs.

• Stock split: When a company divides its existing shares into multiple shares, e.g., 2-for-1 split.

• Dividends: Distribution of a portion of a company's earnings to its shareholders.

• Mergers and acquisitions: When two companies combine or one company acquires another....read more

GAV stands for Gross Asset Value, which represents the total value of all assets in a fund. NAV stands for Net Asset Value, which is the value of a fund's assets after deducting liabilities.

• GAV is the total value of all assets in a fund, including both realized and unrealized gains or losses.

• NAV is the value of a fund's assets after deducting liabilities, such as management fees, operating expenses, and accrued expenses.

• GAV is calculated by adding up the market value of all i...read more

Capstock can affect the NAV by impacting the valuation of the fund's investments.

• Capstock refers to the capitalization of a stock, which is the total value of a company's outstanding shares.

• If a fund holds capstocks that experience a significant increase or decrease in value, it can impact the Net Asset Value (NAV) of the fund.

• An increase in the value of capstocks held by a fund can lead to an increase in the NAV, as the overall value of the fund's investments rises.

• Conversel...read more

Yes, I have extensive knowledge of MS-Excel.

• I am proficient in using Excel for financial analysis and reporting.

• I have experience in creating complex financial models using Excel.

• I am skilled in using Excel functions such as VLOOKUP, SUMIF, and Pivot Tables.

• I have used Excel to prepare financial statements and reconcile accounts.

• I am comfortable working with large data sets in Excel and have experience in data analysis.

I have handled various transformation projects including digital transformation, process optimization, and cultural change.

• Digital transformation of a manufacturing company to automate processes and improve efficiency

• Process optimization of a healthcare organization to reduce wait times and improve patient experience

• Cultural change initiative for a financial services company to promote diversity and inclusion

• Agile transformation of a software development team to improve colla...read more

Annotations used in RESTful web services

• 1. @Path - Specifies the URI path for the resource

• 2. @GET - Specifies that the method handles HTTP GET requests

• 3. @POST - Specifies that the method handles HTTP POST requests

• 4. @PUT - Specifies that the method handles HTTP PUT requests

• 5. @DELETE - Specifies that the method handles HTTP DELETE requests

• 6. @PathParam - Binds the value of a URI template parameter to a method parameter

• 7. @QueryParam - Binds the value of a query parameter to ...read more

Derivatives are financial contracts that derive their value from an underlying asset or benchmark.

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

• Swaps can be interest rate swaps, credit default swaps, total return swaps, or currency swaps.

• IRS stands for interest rate swap, CDS stands for credit default swap, TRS stands for total return swap, and CYS stands for currency swap.

• Fixed income securities are debt securities that pay a fixed interest or dividend u...read more

Unbilled revenue refers to revenue that has been earned but not yet invoiced to the customer.

• Unbilled revenue is a liability on the balance sheet until it is invoiced.

• It represents the amount of revenue that the company has recognized but has not yet received payment for.

• Once the revenue is invoiced, it becomes accounts receivable and is considered an asset.

• Examples of unbilled revenue include services provided but not yet billed, or goods delivered but not yet invoiced.

• Unbil...read more

Derivatives related expenses and incomes are shown in the statement of operations as gains or losses.

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

• Expenses related to derivatives include transaction costs, margin requirements, and hedging costs.

• Incomes related to derivatives include gains or losses from changes in the value of the underlying asset.

• These gains or losses are shown in the statement of operations as either operating or non...read more

To convince a stakeholder, build a strong case with data, align with their goals, address concerns, and communicate effectively.

• Gather data and evidence to support your view

• Understand the stakeholder's goals and priorities

• Address any concerns or objections they may have

• Communicate clearly and effectively, using language they understand

• Provide examples or case studies to illustrate your point

DR and CR are abbreviations for debit and credit, which are used in accounting to record financial transactions. Ledger is a book that contains all the accounts, while subledger is a subsidiary ledger that provides more detailed information for specific accounts.

• DR stands for debit, which represents an increase in assets or a decrease in liabilities or equity.

• CR stands for credit, which represents a decrease in assets or an increase in liabilities or equity.

• Ledger is a book t...read more

Hedge funds are private investment funds that use aggressive strategies to generate high returns. Mutual funds are professionally managed investment portfolios that pool money from many investors.

• Hedge funds are typically only available to accredited investors and have fewer regulations than mutual funds.

• Hedge funds often use leverage and derivatives to amplify returns, but also increase risk.

• Mutual funds are more accessible to retail investors and offer a diversified portfol...read more

Fund accounting is a specialized form of accounting used by organizations that manage funds or investments.

• It focuses on tracking and reporting the financial activities of specific funds or investment portfolios.

• It involves recording and reconciling transactions, calculating net asset values, and preparing financial statements.

• Fund accountants ensure compliance with regulatory requirements and provide accurate and timely financial information to stakeholders.

• Examples of organ...read more

Financial reporting involves the disclosure of financial information to stakeholders. Mutual funds pool money from investors to invest in securities.

• Financial reporting is the process of presenting financial information to stakeholders, such as investors, creditors, and regulators.

• It includes financial statements like balance sheets, income statements, and cash flow statements.

• Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversif...read more

Corporate action refers to any event initiated by a publicly traded company that impacts its shareholders and can include dividends, stock splits, mergers, acquisitions, and more.

• Corporate actions are events initiated by publicly traded companies

• They can impact shareholders and may involve changes in ownership, capital structure, or financial position

• Examples of corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, rights issues, and share buyba...read more

Derivatives are financial contracts 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 future date at a predetermined price.

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

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

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

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

Equity is ownership in a company, while a bond is a debt instrument issued by a company or government.

• Equity represents ownership in a company and gives shareholders the right to vote and receive dividends.

• Bonds are debt instruments where the issuer borrows money from investors and promises to repay the principal with interest.

• Equity holders have a higher risk and potential for higher returns compared to bondholders.

• Examples of equity include common stock, while examples of b...read more

StringBuffer and StringBuilder are both used to manipulate strings, but StringBuffer is thread-safe while StringBuilder is not.

• StringBuffer is synchronized, making it safe for use in multi-threaded environments.

• StringBuilder is not synchronized, making it faster but not thread-safe.

• StringBuffer is preferred when multiple threads are involved, while StringBuilder is preferred for single-threaded scenarios.

• Both classes provide similar methods for string manipulation, such as ap...read more

Yes, the string class can be extended in most programming languages.

• Inheritance can be used to extend the functionality of the string class.

• By creating a new class that inherits from the string class, additional methods and properties can be added.

• Extending the string class allows for customization and adding specific functionality to strings.

• Example: In Python, the string class can be extended by creating a new class that inherits from the built-in str class.

TWRR stands for Time-Weighted Rate of Return. TWRR measures the compound rate of growth in a portfolio. MWRR stands for Money-Weighted Rate of Return. MWRR takes into account the timing and amount of cash flows.

• TWRR is a measure of the compound rate of growth in a portfolio over a specific period of time.

• MWRR takes into account the timing and amount of cash flows, providing a more accurate representation of an investor's actual return.

• TWRR is useful for evaluating the perform...read more

I handle escalations by staying calm, listening actively, empathizing with the customer, finding a solution, and escalating to a higher authority if needed.

• Stay calm and composed during the escalation

• Listen actively to understand the customer's concerns

• Empathize with the customer to show understanding and build rapport

• Find a solution that meets the customer's needs and expectations

• Escalate to a higher authority if necessary for resolution

Different types of financial statements include income statement, balance sheet, cash flow statement, and statement of changes in equity.

• Income statement: Shows a company's revenues and expenses over a specific period of time.

• Balance sheet: Provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

• Cash flow statement: Details the cash inflows and outflows of a company during a specific period.

• Statement of change...read more

Fund accounting is a specialized accounting system used by investment companies to track and manage their portfolio of investments.

• It involves tracking the performance of individual investments and calculating the net asset value (NAV) of the fund.

• It also involves ensuring compliance with regulatory requirements and preparing financial statements for investors.

• Examples of investment companies that use fund accounting include mutual funds, hedge funds, and private equity firms...read more

Implicit objects in JSP are predefined objects that are available for use without any declaration or initialization.

• Implicit objects in JSP include request, response, session, application, out, config, pageContext, page, exception, and others.

• These objects provide access to various aspects of the JSP environment and can be used to perform common tasks.

• For example, the request object allows access to HTTP request parameters, while the session object provides access to session ...read more

Capital market is a platform for buying and selling long-term securities, while bond market is a subset of capital market where fixed-income securities are traded.

• Capital market deals with long-term securities such as stocks, bonds, and mutual funds

• It provides a platform for companies to raise capital by issuing securities to investors

• Bond market is a subset of capital market where fixed-income securities such as corporate bonds, government bonds, and municipal bonds are trad...read more

NAV stands for Net Asset Value, it is a measure of the value of a mutual fund's assets minus its liabilities.

• NAV is calculated by subtracting the total liabilities of a mutual fund from the total value of its assets.

• The formula for calculating NAV is (Total Assets - Total Liabilities) / Total Number of Outstanding Shares.

• For example, if a mutual fund has $100 million in assets, $10 million in liabilities, and 1 million outstanding shares, the NAV would be ($100M - $10M) / 1M ...read more

Deferred revenue is a liability that arises when a company receives payment for goods or services that it has not yet delivered or earned.

• Deferred revenue is also known as unearned revenue or advance payments.

• It is recorded as a liability on the balance sheet until the goods or services are delivered or earned.

• Once the goods or services are provided, the deferred revenue is recognized as revenue on the income statement.

• Examples of deferred revenue include prepaid rent, annual...read more

Yes, dividends impact NAV (Net Asset Value).

• Dividends are a distribution of a portion of a company's earnings to its shareholders.

• When a company pays out dividends, it reduces its retained earnings and cash balance.

• As a result, the NAV of a fund that holds shares of the company will decrease.

• The impact of dividends on NAV depends on the size of the dividend and the fund's holdings.

• For example, if a fund holds a significant amount of shares in a company that pays a large divid...read more

I have handled AI and Robotics in my previous role as a Project Manager.

• Managed a team of developers to create an AI chatbot for customer service

• Implemented a robotic process automation system to streamline manual tasks

• Worked with data scientists to develop machine learning algorithms for predictive analytics

• Collaborated with hardware engineers to design and build a prototype robot for warehouse automation

Delegate tasks, prioritize work, communicate with team members, adjust deadlines if necessary

• Delegate tasks to other team members to ensure work continues smoothly

• Prioritize work based on urgency and importance

• Communicate with team members about the situation and any adjustments that may be needed

• Adjust deadlines if necessary to accommodate the absence of employees

• Consider bringing in temporary help or redistributing workload among existing team members

NAV stands for Net Asset Value, it is the value of a fund's assets minus its liabilities.

• NAV is calculated by subtracting the total value of a fund's liabilities from the total value of its assets.

• The formula for calculating NAV is: NAV = (Total Assets - Total Liabilities) / Total Number of Outstanding Shares

• NAV is typically calculated at the end of each trading day to determine the price at which shares of the fund are bought and sold.

• For example, if a mutual fund has total ...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

Facilities in loan syndication include term loans, revolving credit facilities, and bridge loans.

• Term loans are long-term loans with a fixed repayment schedule.

• Revolving credit facilities provide borrowers with a line of credit that can be drawn upon and repaid multiple times.

• Bridge loans are short-term loans used to bridge the gap between the need for immediate financing and the availability of long-term financing.

• Other types of facilities may include standby letters of cred...read more

Investment banking involves raising capital for clients through underwriting and issuing securities, while investment management involves managing assets on behalf of clients.

• Investment banking focuses on the creation and sale of securities, such as stocks and bonds, to raise capital for clients.

• Investment managers manage assets on behalf of clients, such as mutual funds, pension funds, and hedge funds.

• Investment banking involves advising clients on mergers and acquisitions, ...read more

A fund accountant is responsible for maintaining financial records, preparing financial statements, and ensuring compliance with regulations.

• Preparing financial statements for clients

• Maintaining accurate records of all financial transactions

• Ensuring compliance with regulatory requirements

• Calculating net asset values (NAV) for funds

• Reconciling cash accounts and preparing cash flow statements

Mutual funds and hedge funds differ in their investment strategies and regulations. Balance sheet shows a company's financial position. Accrual journal entries record revenues and expenses when they are earned or incurred. Subscription journal entry records new investments in a fund. Performance and management fees are charges for managing a fund's assets.

• Mutual funds are regulated investment vehicles that pool money from multiple investors to invest in securities, while hedg...read more

RWA components are the factors used to calculate the minimum capital requirement for a bank.

• RWA stands for Risk Weighted Assets.

• The components include credit risk, market risk, and operational risk.

• Credit risk is the largest component and is based on the creditworthiness of borrowers.

• Market risk is based on the potential losses from changes in market conditions.

• Operational risk is based on the potential losses from inadequate or failed internal processes, people, and systems....read more

A swap is a financial derivative contract in which two parties agree to exchange one stream of cash flows for another.

• Swaps are commonly used to hedge against interest rate risk or to speculate on future market movements.

• The two most common types of swaps are interest rate swaps and currency swaps.

• In an interest rate swap, two parties agree to exchange fixed and floating interest rate payments based on a notional principal amount.

• In a currency swap, two parties agree to excha...read more

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

I want to work here because of the opportunity to contribute to a dynamic team and grow professionally.

• I am excited about the opportunity to work with a team of professionals who are dedicated to delivering exceptional service.

• I am impressed by the company's commitment to innovation and continuous improvement.

• I believe that my skills and experience align well with the company's goals and values.

• I am eager to learn and grow in a challenging and rewarding environment.

• I am attra...read more

A hash map is a data structure that uses a hash function to map keys to values.

• Hash map stores key-value pairs

• It uses a hash function to compute an index for each key

• Collisions can occur when two keys hash to the same index

• Hash maps provide fast access to values based on their keys

Corporate actions refer to events initiated by a publicly traded company that can impact its shareholders and the value of its securities.

• Corporate actions include events such as stock splits, dividends, mergers, acquisitions, rights issues, and spin-offs.

• These actions can affect the ownership structure, share price, and overall value of a company.

• For example, a stock split may increase the number of shares outstanding while reducing the price per share, making it more afford...read more

Risk can be brought down to acceptable level by implementing risk management strategies.

• Identify and assess potential risks

• Develop a risk management plan

• Implement risk mitigation strategies

• Monitor and review risks regularly

• Communicate and involve stakeholders in risk management process

Types of swaps include interest rate swaps, currency swaps, and commodity swaps. Accrual calculation is the process of determining the amount of interest earned or owed on a swap.

• Interest rate swaps involve exchanging fixed and floating interest rate payments based on a notional amount.

• Currency swaps involve exchanging principal and interest payments in different currencies.

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

• Accrual calculation inv...read more

NAV is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.

• Calculate the total value of assets

• Subtract the total value of liabilities

• Divide the result by the number of outstanding shares

• NAV = (Total Assets - Total Liabilities) / Outstanding Shares

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

Managing a team requires clear communication, delegation of tasks, setting goals, providing feedback, and fostering a positive work environment.

• Establish clear communication channels and ensure everyone is on the same page

• Delegate tasks based on individual strengths and provide necessary resources

• Set achievable goals and track progress regularly

• Provide constructive feedback and recognize achievements

• Foster a positive work environment through team building activities and open ...read more

I will analyze client financials by reviewing income statements, balance sheets, cash flow statements, and conducting ratio analysis.

• Review income statements to assess revenue and expenses

• Analyze balance sheets to understand assets, liabilities, and equity

• Examine cash flow statements to evaluate cash inflows and outflows

• Conduct ratio analysis to assess liquidity, profitability, and solvency

• Compare financials to industry benchmarks for performance evaluation

Financial statements are reports that show the financial performance of a company over a specific period of time.

• Financial statements include the balance sheet, income statement, and cash flow statement.

• The balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• The income statement shows a company's revenue, expenses, and net income over a specific period of time.

• The cash flow statement shows the inflow and outflow of cash over a specific ...read more

MVC is a software architectural pattern that separates an application into three main components: Model, View, and Controller.

• Model represents the data and business logic of the application.

• View is responsible for displaying the user interface.

• Controller handles user input, updates the model, and interacts with the view.

• MVC promotes separation of concerns and modularity in software development.

• Example: In a web application, the model could be a database, the view could be an ...read more

A bond is a debt security that represents a loan made by an investor to a borrower.

• Bonds are issued by corporations, municipalities, and governments to raise capital.

• They have a fixed interest rate and a maturity date when the principal is repaid.

• Bonds are generally considered less risky than stocks but offer lower potential returns.

• Investors can buy and sell bonds on the secondary market.

• Examples of bonds include U.S. Treasury bonds, corporate bonds, and municipal bonds.

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

• NAV is calculated by subtracting the fund's liabilities from its assets, then dividing by the number of shares outstanding.

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

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

• For example, if a mutual fund has assets worth $100 million, liabilities of ...read more

Derivatives are financial instruments whose value is derived from an underlying asset. Mutual funds are investment vehicles that pool money from multiple investors to invest in securities.

• Derivatives are contracts between two parties that derive their value from an underlying asset such as stocks, bonds, commodities, or currencies.

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

• Mutual funds are investment vehicles that pool money from multiple investors to ...read more

KYC (Know Your Customer) and AML (Anti-Money Laundering) are regulatory processes used by financial institutions to verify customer identities and prevent money laundering.

• KYC is the process of verifying the identity of customers and assessing their potential risks.

• AML refers to the measures taken to prevent money laundering, terrorist financing, and other financial crimes.

• KYC and AML are important for financial institutions to comply with regulations and protect against fina...read more

Mutual funds and hedge funds are investment vehicles that pool money from multiple investors to invest in various securities.

• Mutual funds are managed by professional fund managers and offer a diversified portfolio of stocks, bonds, and other assets.

• Investors in mutual funds own shares of the fund and earn returns based on the performance of the underlying securities.

• Hedge funds are typically available only to accredited investors and employ more complex investment strategies....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.

The life cycle of loan syndication involves several stages from origination to repayment.

• Origination: The process begins with the borrower approaching a lead arranger or syndicate of lenders.

• Structuring: The lead arranger structures the loan, determining the terms, conditions, and pricing.

• Underwriting: Lenders assess the creditworthiness of the borrower and commit to providing a portion of the loan.

• Syndication: The lead arranger invites other lenders to participate in the loa...read more

Use sorting or heap data structure to find the kth largest element in the array.

• Sort the array in descending order and return the element at index k-1.

• Use a max heap to store the elements and pop k-1 elements to find the kth largest element.

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

RCSA stands for Risk and Control Self-Assessment. Control testing is a process of evaluating the effectiveness of internal controls.

• RCSA is a risk management technique used to identify, assess, and evaluate risks and controls within an organization.

• Control testing involves testing the design and operating effectiveness of internal controls to ensure they are working as intended.

• Examples of control testing include walkthroughs, testing of transactions, and testing of IT genera...read more

HashMap is a data structure that stores key-value pairs, while Concurrency Map allows for safe concurrent access.

• HashMap internally uses an array of linked lists to store key-value pairs.

• Concurrency Map implementations like ConcurrentHashMap use locks or other mechanisms to allow safe concurrent access.

• HashMap allows for null keys and values, while ConcurrentHashMap does not allow null keys or values.

• Concurrency Map implementations provide better performance in multi-threaded...read more

Accrual income is recorded when it is earned, regardless of when cash is received.

• Accrual income is recognized when it is earned, not when cash is received.

• It involves recording revenue or expenses in the period they are incurred, even if cash transactions have not occurred.

• Accrual income is recorded through adjusting journal entries at the end of an accounting period.

• Examples include recognizing revenue from services provided but not yet invoiced, or recording interest incom...read more

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

Loan syndication is the process of involving multiple lenders to provide funds for a single borrower.

• Loan syndication involves multiple lenders pooling their resources to provide a large loan to a borrower.

• It is commonly used for large-scale projects or acquisitions that require a significant amount of capital.

• The lead bank or arranger coordinates the syndication process, negotiates terms, and distributes the loan among participating lenders.

• Syndicated loans can be structured...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

Risk refers to the potential for loss or harm, while compliance of risk involves adhering to regulations and guidelines to mitigate risks.

• Risk is the possibility of an event occurring that could have negative consequences.

• Compliance of risk involves following laws, regulations, and internal policies to manage and reduce risks.

• Examples of risk include financial risk, cybersecurity risk, and operational risk.

• Examples of compliance of risk include implementing data protection me...read more

Batch data can be tested by running automated scripts to validate data accuracy, completeness, and consistency.

• Create test scripts to validate data input/output

• Compare batch data with expected results

• Check for data accuracy, completeness, and consistency

• Perform data profiling to identify anomalies

• Use data visualization tools to analyze batch data

Private equity refers to investments made in private companies that are not publicly traded on a stock exchange.

• Private equity firms raise funds from investors and use that capital to acquire companies or make investments in private companies.

• They typically aim to improve the performance of the companies they invest in and then sell them for a profit.

• Private equity investments can be in a variety of industries, such as healthcare, technology, and real estate.

• Examples of priva...read more

The Investment Company Act of 1940 regulates the organization of investment companies and the activities they engage in.

• Passed in 1940 to regulate the organization and activities of investment companies

• Requires registration with the SEC and disclosure of financial information to investors

• Sets standards for governance, operations, and transactions of investment companies

• Designed to protect investors from fraud and conflicts of interest

Yes, I have experience in trading different types of assets including stocks, bonds, and commodities.

• I have traded stocks on various exchanges including NYSE and NASDAQ

• I have experience in trading government and corporate bonds

• I have traded commodities such as gold, silver, and oil

• I am familiar with different trading strategies and tools such as technical analysis and options trading

I have 5 years of experience in market risk analysis and have a strong understanding of financial markets.

• Developed risk management strategies to mitigate market risk exposure

• Analyzed market trends and their impact on portfolio performance

• Utilized financial models to assess potential risks and opportunities

• Collaborated with traders and senior management to make informed decisions

• Stayed updated on regulatory changes and industry best practices

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

P&L lines refer to the revenue and expenses of a business, which are used to calculate the profit or loss.

• P&L lines are also known as income statements.

• They show the revenue generated by a business and the expenses incurred to generate that revenue.

• The difference between the revenue and expenses is the profit or loss.

• P&L lines are important for businesses to track their financial performance and make informed decisions.

• Examples of revenue include sales, interest income, and r...read more

Margin calculation for futures

• Margin is the amount of money required to open a futures position

• It is calculated based on the contract size, price, and leverage

• Initial margin is required to open a position, maintenance margin to keep it open

• Margin calls occur when the account falls below the maintenance margin

• Example: Buying one E-mini S&P 500 futures contract with a contract size of $50 x S&P 500 index value and a price of 3,000 would require an initial margin of $6,000

Futures are contracts to buy or sell assets at a future date, while options give the holder the right but not the obligation to buy or sell assets at a set price.

• Futures involve an obligation to buy or sell the underlying asset at a specified price and date.

• Options give the holder the right, but not the obligation, to buy or sell the underlying asset at a set price within a specified time frame.

• Futures are standardized contracts traded on exchanges, while options can be trade...read more

Credit is the ability to borrow money or obtain goods or services before payment, based on the trust that payment will be made in the future.

• Credit allows individuals and businesses to make purchases or investments without having to pay for them immediately.

• It involves borrowing money with the promise to repay it, usually with interest.

• Credit can come in various forms such as credit cards, loans, mortgages, and lines of credit.

Roll over is a term used to describe the action of extending the maturity date of a financial instrument or investment.

• Roll over is commonly used in the context of fixed income securities, such as bonds or certificates of deposit.

• It allows investors to continue holding their investment beyond its original maturity date.

• Rolling over can involve reinvesting the principal and any accrued interest into a new instrument with a longer maturity.

• It can also refer to the process of tr...read more

Shares represent ownership in a company while debentures are a type of debt instrument issued by a company.

• Shares represent ownership in a company and give the shareholder voting rights and a share in the profits.

• Debentures are a type of debt instrument issued by a company and pay a fixed rate of interest to the debenture holder.

• Shares are generally considered riskier than debentures as the value of shares can fluctuate greatly based on market conditions.

• Debentures are genera...read more

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• For example, a stock option derives its value from the underlying stock, while a currency swap derives its value from exchange rates.

Managing quality involves setting standards, monitoring performance, and continuously improving processes.

• Establish clear quality standards and communicate them to the team

• Regularly monitor performance and provide feedback to team members

• Identify areas for improvement and implement changes to processes

• Encourage a culture of continuous improvement and learning

• Use data and metrics to measure and track quality

• Ensure that all team members are trained and equipped to meet quality ...read more

A tuple is an immutable collection of elements, while a list is a mutable collection in Python.

• Tuples are created using parentheses (), while lists are created using square brackets []

• Tuples are immutable, meaning their elements cannot be changed once defined

• Lists are mutable, allowing for elements to be added, removed, or modified

• Tuples are typically used for fixed collections of items, while lists are used for dynamic collections

Trade settlement is the process of transferring securities and funds between parties involved in a trade.

• Trade settlement involves the finalization of a trade by transferring securities from the seller to the buyer and funds from the buyer to the seller.

• It typically involves the clearing and settlement of trades through a central clearinghouse or directly between parties.

• Trade settlement ensures that all parties fulfill their obligations as per the terms of the trade agreemen...read more

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

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

• Futures contracts obligate the buyer to purchase an asset at a specific price on a future date.

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time period.

• Swaps involve the exchange of cash flows based on different financial instr...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

A custodian is a person or organization responsible for the care, maintenance, and security of a building or property.

• Custodians are responsible for cleaning and maintaining the premises.

• They ensure the security of the building by monitoring access and conducting regular inspections.

• Custodians may also handle minor repairs and maintenance tasks.

• They may be employed by schools, offices, hospitals, or other institutions.

• Examples of custodial duties include vacuuming, mopping, d...read more

Yes, I am flexible with shift timings.

• I am willing to work different shifts as required.

• I understand the importance of being adaptable in a dynamic work environment.

• I have previous experience working different shifts and have successfully managed my schedule.

• I prioritize the needs of the team and organization over personal preferences for shift timings.

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

Binary search is a fast search algorithm that finds the position of a target value within a sorted array.

• Divide the array in half and compare the target value with the middle element

• If the target value is less than the middle element, search the left half of the array

• If the target value is greater than the middle element, search the right half of the array

• Repeat the process until the target value is found or the subarray is empty

Equity refers to ownership in a company, while mutual funds are investment vehicles that pool money from multiple investors to invest in various securities.

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

• Mutual funds are investment vehicles that pool money from multiple investors to invest in various securities

• Mutual funds offer diversification and professional management

• Equity investments carry higher risk but also have the potential for hi...read more

Clear fundamental of accounting is essential for understanding financial transactions and making informed business decisions.

• Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions.

• It involves the preparation of financial statements such as balance sheets, income statements, and cash flow statements.

• Understanding accounting principles like accrual basis, matching principle, and consistency is crucial.

• Knowledge of debits and credits...read more

Investment banking involves providing financial services to corporations, governments, and other institutions.

• Raising capital for clients through issuing stocks or bonds

• Mergers and acquisitions advisory services

• Providing strategic financial advice to clients

• Underwriting securities offerings

• Trading of securities for clients

The Brinson model is an asset allocation model that decomposes the returns of a portfolio into the effects of asset allocation, market timing, and security selection.

• Developed by Gary P. Brinson in 1986

• Helps investors understand the sources of return in their portfolio

• Considers the impact of asset allocation, market timing, and security selection on portfolio performance

I have 3 years of experience in my previous company working as a software engineer.

• Worked on various projects involving web development and database management

• Collaborated with cross-functional teams to deliver high-quality software solutions

• Received positive feedback from supervisors for my problem-solving skills and attention to detail