100+ State Street Corporation Interview Questions and Answers

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

Types of markets refer to the different categories in which goods and services are bought and sold.

• Perfect competition market - many buyers and sellers with identical products (e.g. agricultural products)

• Monopoly market - single seller with unique product and high barriers to entry (e.g. utilities)

• Oligopoly market - few large firms dominating the market (e.g. automobile industry)

• Monopolistic competition market - many sellers offering differentiated products (e.g. fast food ch...read more

VAR calculation is a risk management technique used to measure and manage the potential losses in a portfolio.

• VAR stands for Value at Risk and is a statistical measure used to quantify the level of financial risk within a firm or investment portfolio.

• It helps in determining the maximum potential loss that an investment portfolio may face over a specified time period and at a given confidence level.

• VAR calculation involves statistical methods such as historical simulation, Mon...read more

Portfolio management involves managing a collection of investments to achieve a specific financial goal.

• Involves selecting and monitoring a mix of assets such as stocks, bonds, and mutual funds

• Balancing risk and return based on investor's objectives

• Rebalancing the portfolio periodically to maintain desired asset allocation

• Examples include creating a diversified portfolio to minimize risk and maximize returns

Golden Rules of Accounting are basic principles that guide the process of recording financial transactions.

• The three Golden Rules of Accounting are: Debit what comes in, Credit what goes out, Debit the receiver, Credit the giver, Debit expenses and losses, Credit income and gains.

• These rules help maintain the balance in the accounting equation: Assets = Liabilities + Equity.

• For example, when a company receives cash from a customer, it will debit the cash account (what comes i...read more

Time weighted return is a measure of the compound rate of growth in a portfolio over a specific period of time.

• Time weighted return accounts for the impact of external cash flows on the performance of the portfolio.

• It is calculated by taking the geometric mean of the periodic returns.

• Time weighted return is useful for evaluating the performance of investment managers.

• Example: If an investment portfolio has a time weighted return of 5% over a year, it means the portfolio grew ...read more

A derivative is a financial contract whose value is derived from the performance of an underlying asset, index, or entity.

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

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

• For example, a stock option gives the holder the right to buy or sell a stock at a specified price within a certain time frame.

Error handling in PySpark involves using try-except blocks and logging to handle exceptions and errors.

• Use try-except blocks to catch and handle exceptions in PySpark code

• Utilize logging to record errors and exceptions for debugging purposes

• Consider using the .option('mode', 'PERMISSIVE') method to handle corrupt records in data processing

Switch and transfers are both methods of changing one's job or position, but they differ in their scope and purpose.

• Switching refers to changing jobs within the same organization or industry, while transfers involve moving to a different organization or industry.

• Switching often involves a lateral move or a promotion within the same company, while transfers typically involve starting anew in a different company.

• Switching allows individuals to leverage their existing skills and...read more

Restructure is the process of reorganizing a company's structure, operations, or finances to improve efficiency or adapt to changes.

• Involves making changes to the organization's hierarchy, departments, or processes

• May include downsizing, merging departments, or changing reporting relationships

• Often done to cut costs, increase productivity, or respond to market changes

Bank debts refer to the money owed by a bank to its creditors, typically in the form of loans or bonds.

• Bank debts are liabilities on a bank's balance sheet.

• They can include loans taken from other financial institutions or individuals.

• Bank debts can also include bonds issued by the bank to raise capital.

• Failure to repay bank debts can lead to financial instability or bankruptcy.

• Examples of bank debts include mortgages, corporate loans, and government bonds.

Extension class in .NET allows adding new methods or properties to an existing class without modifying its source code.

• Use the 'this' keyword followed by the type you want to extend

• Define static methods in extension classes

• Extension methods must be in a static class

• Extension methods must be in the same namespace as the extended class

• Example: public static class StringExtensions { public static bool IsNullOrEmpty(this string str) { return string.IsNullOrEmpty(str); }}

NAV calculation refers to the process of determining the net asset value of a fund.

• NAV calculation involves valuing all the assets in a fund, subtracting liabilities, and dividing by the number of outstanding shares.

• It is typically done at the end of each trading day to provide an accurate reflection of the fund's value.

• NAV calculation is important for investors to understand the true value of their investments in the fund.

Yes, I am ready for rotational shifts.

• I am flexible with my schedule and can adapt to different shifts

• I understand the importance of teamwork and collaboration in a 24/7 work environment

• I have previous experience working in rotational shifts and have successfully managed my time and workload

CLO bank debt refers to debt issued by collateralized loan obligations (CLOs) to finance leveraged loans.

• CLO bank debt is a type of debt issued by CLOs, which are special purpose vehicles that invest in a diversified pool of loans.

• The proceeds from CLO bank debt are used to finance leveraged loans, which are loans made to companies with high levels of debt.

• CLO bank debt typically has a seniority ranking within the CLO structure, meaning it has priority in receiving payments f...read more

Sharpe ratio is a measure of risk-adjusted return, indicating how much excess return an investment generates per unit of risk.

• Sharpe ratio is calculated by subtracting the risk-free rate of return from the investment's return, and then dividing by the standard deviation of the investment's return.

• A higher Sharpe ratio indicates better risk-adjusted performance.

• For example, if Investment A has an annual return of 10% with a standard deviation of 15% and the risk-free rate is 2...read more

Primary key is a unique identifier for each record in a database table.

• Primary key ensures each record in a table is unique

• It can be a single column or a combination of columns

• Primary key values cannot be NULL

• Example: In a table of students, student ID can be a primary key

Foreign key is a column or a set of columns in a table that uniquely identifies a row in another table.

• A foreign key establishes a relationship between two tables in a database.

• It ensures referential integrity by enforcing a link between the data in the two tables.

• Foreign key constraints prevent actions that would destroy links between tables, such as deleting a row that is referenced by another table.

• Example: In a database with tables 'Orders' and 'Customers', the 'CustomerI...read more

Reverse a linked list by changing the direction of pointers

• Start with three pointers: current, previous, and next

• Iterate through the list, updating pointers to reverse the direction

• Return the new head of the reversed list

The Fibonacci series is a sequence of numbers where each number is the sum of the two preceding ones.

• Start with two variables initialized to 0 and 1

• Loop through desired number of iterations, adding the previous two numbers to get the next number

• Print or store each number in the series

A trial balance is a financial statement that lists all the accounts in a company's general ledger and their balances.

• Used to ensure that debits equal credits in the accounting system

• Helps in detecting errors in recording transactions

• Prepares the company for the financial statement preparation

• Can be used to create financial ratios for analysis

A mutual fund is a type of investment vehicle consisting of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

• Mutual funds are managed by professional fund managers who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors.

• Investors in a mutual fund own shares of the fund, which represent a portion of the holdings of the fund.

• Mu...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 or assets between two parties base...read more

Corporate action refers to events initiated by a public company that impact its shareholders and securities.

• Types of corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• Dividends are payments made to shareholders from a company's profits.

• Stock splits involve dividing existing shares into multiple shares.

• Mergers occur when two companies combine to form a new entity.

• Acquisitions involve one company purchasing another.

• Spin-offs ...read more

The flow of an N-tier enterprise app involves multiple layers of architecture for efficient data processing and communication.

• N-tier architecture divides the application into multiple layers such as presentation, business logic, and data access.

• Each layer communicates with the layer above and below it, passing data and requests as needed.

• For example, in a typical web application, the presentation layer interacts with the business logic layer, which in turn communicates with t...read more

CV stands for Curriculum Vitae, a document detailing a person's education, work experience, skills, and achievements.

• CV is a comprehensive document that outlines a person's academic and professional background.

• It typically includes sections such as education, work experience, skills, achievements, and contact information.

• CVs are commonly used when applying for jobs, internships, scholarships, or academic programs.

• They are often tailored to specific positions or opportunities ...read more

Selenium commands are used to automate browser actions.

• Selenium commands can be used to open a browser window

• Commands can be used to navigate to a specific URL

• Commands can be used to interact with web elements on a page

• Commands can be used to perform actions like clicking a button or filling out a form

• Commands can be used to handle alerts and pop-ups

• Examples of Selenium commands include get(), findElement(), click(), sendKeys(), and switchTo()

Segments of capital market refer to different categories of financial instruments and assets traded in the market.

• Primary market: where new securities are issued and sold for the first time, such as IPOs

• Secondary market: where existing securities are bought and sold among investors, such as stock exchanges

• Money market: deals with short-term debt securities like Treasury bills and commercial paper

• Bond market: where fixed-income securities like government and corporate bonds ar...read more

I am currently earning a salary of X.

• My current CTC is X

• I am earning X per annum

• My current salary is X

• I am being paid X for my work