10+ State Street Syntel Interview Questions and Answers for Freshers

Derivatives are financial contracts that derive their value from an underlying asset. They can be exchange-traded or over-the-counter (OTC). Corporate actions refer to events that affect a company's stock price.

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

• There are two types of derivatives: exchange-traded and over-the-counter (OTC). Exchange-traded derivatives are standardized contracts that trade on organi...read more

Primary market is where new securities are issued, while secondary market is where already issued securities are traded.

• Primary market involves the sale of new securities to the public for the first time

• Secondary market involves the trading of already issued securities among investors

• Primary market helps companies raise capital for their business operations

• Secondary market provides liquidity to investors who want to buy or sell securities

• Examples of primary market include IPO...read more

Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.

• Financial markets facilitate the flow of capital between investors and borrowers.

• They provide a mechanism for price discovery and risk management.

• Examples of financial markets include stock exchanges, bond markets, foreign exchange markets, and commodity markets.

• Financial markets can be classified as primary markets or secondary markets.

• Primary ma...read more

Corporate Action refers to any event initiated by a publicly-traded company that affects its shareholders.

• Corporate actions can be voluntary or mandatory.

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

• Corporate actions can have a significant impact on the value of a company's stock and the wealth of its shareholders.

• Investors need to stay informed about corporate actions to make informed investment decisions.

Capital Markets are financial markets where long-term securities such as stocks, bonds, and other investments are bought and sold.

• Capital Markets are where companies and governments raise funds by issuing securities to investors

• These markets are divided into primary and secondary markets

• Primary markets are where new securities are issued and sold to the public for the first time

• Secondary markets are where existing securities are bought and sold between investors

• Examples of ca...read more

Money Markets are financial markets where short-term financial instruments are traded.

• Money Markets deal with short-term financial instruments such as treasury bills, commercial papers, certificates of deposit, etc.

• They are used by governments, corporations, and financial institutions to manage their short-term cash needs.

• Money Markets are considered to be safe and low-risk investments.

• They are regulated by central banks and other financial regulatory bodies.

• Examples of Money...read more

A mutual fund is a type of investment vehicle made up of a pool of money collected from many investors to invest in securities.

• Mutual funds are managed by professional fund managers.

• Investors buy shares in the mutual fund, which represents a portion of the holdings of the fund.

• The value of the shares is determined by the performance of the underlying securities in the fund.

• Mutual funds offer diversification and convenience for investors.

• Examples of mutual fund companies inclu...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

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

Benchmark is a standard or point of reference used for comparison or evaluation.

• Benchmark is used to measure the performance of a product, service, or investment against a standard.

• It helps in identifying strengths and weaknesses and improving performance.

• Examples of benchmarks include stock market indices, interest rates, and industry-specific metrics.

• Benchmarking can be internal (comparing performance within an organization) or external (comparing performance with competito...read more