State Street Global Advisors Interview Questions, Process, and Tips

Futures and forwards are both types of derivative contracts, but they differ in terms of their standardization, trading platform, and settlement.

• Futures contracts are standardized and traded on exchanges, while forwards are customized and traded over-the-counter.

• Futures contracts have daily settlement and are marked-to-market, while forwards settle at the end of the contract period.

• Futures contracts have lower counterp...read more

GAAP and IFRS are two different accounting standards used globally.

• GAAP is used primarily in the United States, while IFRS is used in most other countries.

• GAAP is rules-based, while IFRS is principles-based.

• IFRS allows for more judgment and interpretation in financial reporting.

• IFRS requires more extensive disclosures in financial statements.

• IFRS is considered more flexible and adaptable to changing business environmen...read more

Bonds are debt securities issued by companies or governments to raise capital.

• Bonds are essentially loans that investors make to the issuer

• They have a fixed interest rate and a maturity date

• The issuer pays interest to the bondholder until the bond matures

• At maturity, the issuer repays the principal amount to the bondholder

• Bonds are generally considered less risky than stocks

• Examples of bonds include government bonds, c

Derivatives are financial instruments whose value is derived from an underlying asset or benchmark.

• Derivatives are contracts between two parties that specify the conditions for buying or selling an asset at a future date and price.

• They are used for hedging, speculation, and arbitrage in financial markets.

• Examples of derivatives include futures contracts, options, swaps, and forward contracts.