Olympus Interview Questions and Answers

Capital market is a platform where long-term securities are traded. It is of two types - primary and secondary.

• Capital market is a market for long-term securities like stocks, bonds, and debentures.

• It is of two types - primary market and secondary market.

• Primary market is where new securities are issued for the first time, while secondary market is where existing securities are traded.

• Capital market helps companies raise funds for their long-term investments.

• Examples of capit...read more

Capital market is a platform where companies and governments can raise funds through the sale of securities. Investment banking involves providing financial services to clients. Mutual funds are investment vehicles that pool money from multiple investors to invest in various securities. SEBI is the regulatory body that oversees the securities market in India. Money market is a platform where short-term financial instruments are traded.

• Capital market is a platform for raising ...read more

Equity is generally more risky than mutual funds.

• Equity investments are subject to market volatility and can experience significant fluctuations in value.

• Mutual funds are diversified portfolios of investments, which can help to mitigate risk.

• However, some mutual funds may invest heavily in equities, making them more risky than other types of mutual funds.

• Ultimately, the level of risk depends on the specific investments within each category.

• For example, a mutual fund that inve...read more

A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other assets.

• Mutual funds are managed by professional fund managers.

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying assets.

• Types of mutual funds include equity funds, bond funds, money market funds, and balanced funds.

• Equity funds invest in stocks, bond funds invest in bonds, money ma...read more

Derivatives are financial contracts that derive their value from an underlying asset. Types include futures, options, swaps, and forwards.

• Derivatives are used for hedging, speculation, and arbitrage.

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

• Options give the holder 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.

• Forward...read more

Financial market is a platform where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.

• Financial market facilitates the exchange of financial assets between buyers and sellers

• It includes stock markets, bond markets, currency markets, and commodity markets

• Financial market helps in determining the prices of financial assets based on supply and demand

• It plays a crucial role in the economy by providing capital to businesses and governmen...read more

The golden rules of accounting are fundamental principles that guide the recording of financial transactions.

• The first golden rule is the Debit and Credit rule, which states that for every transaction, there must be at least two accounts involved, and the total debits must equal the total credits.

• The second golden rule is the Real Account rule, which states that real accounts (assets, liabilities, and equity) increase with debits and decrease with credits.

• The third golden rul...read more

Golden rules of account refer to basic principles of accounting that should be followed to maintain accurate financial records.

• Maintain proper records of all financial transactions

• Ensure consistency in accounting methods

• Separate personal and business finances

• Follow the principle of conservatism

• Maintain accuracy and completeness of financial statements