10+ Centriti Interview Questions and Answers

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

• Futures contracts

• Options contracts

• Swaps

• Forwards contracts

• Credit derivatives

• Interest rate derivatives

• Currency derivatives

• Commodity derivatives

Capital market is a financial market where long-term securities are traded.

• It is a market for buying and selling long-term securities such as stocks, bonds, and mutual funds.

• It provides a platform for companies and governments to raise funds for their long-term projects.

• Investors can buy and sell securities in the capital market to earn returns on their investments.

• Examples of capital markets include the New York Stock Exchange (NYSE) and NASDAQ.

• Capital market is different fr...read more

Financial statements are reports that show the financial performance of a company.

• Income statement: shows revenue, expenses, and net income/loss

• Balance sheet: shows assets, liabilities, and equity at a specific point in time

• Cash flow statement: shows cash inflows and outflows during a specific period

• Statement of changes in equity: shows changes in equity during a specific period

• Notes to financial statements: provides additional information and context

Investment banking is a type of financial service that helps companies and governments raise capital by underwriting and selling securities.

• Provides financial advice to clients

• Underwrites and sells securities

• Assists in mergers and acquisitions

• Helps clients raise capital

• Examples: Goldman Sachs, JPMorgan Chase, Morgan Stanley

A financial derivative is a contract between two parties based on an underlying asset or financial instrument.

• A derivative derives its value from an underlying asset such as stocks, bonds, commodities, or currencies.

• It is a financial instrument that allows investors to speculate on the price movements of the underlying asset without owning it.

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

• Common types of derivatives include options, futures, forwards, and swap...read more

Capital market is a financial market where long-term securities are traded.

• It is a market for buying and selling long-term securities such as stocks, bonds, and debentures.

• It provides a platform for companies and governments to raise funds for their long-term investment projects.

• It is regulated by the Securities and Exchange Board of India (SEBI) in India.

• Examples of capital markets include the New York Stock Exchange (NYSE) and the Bombay Stock Exchange (BSE).

A mathematical concept that represents the rate of change of a function with respect to its independent variable.

• The derivative of a function f(x) at a point x=a is denoted by f'(a)

• The derivative of a constant is zero

• The derivative of a sum of functions is the sum of their derivatives

• The derivative of a product of functions is the first function times the derivative of the second plus the second function times the derivative of the first

• The derivative of a quotient of functio...read more

A share is a unit of ownership in a company or corporation.

• Shares represent a portion of ownership in a company

• Shareholders have voting rights and may receive dividends

• Shares can be bought and sold on stock exchanges

• The value of shares can fluctuate based on market conditions

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 when the principal is repaid.

• Bonds can be traded on the secondary market and their prices fluctuate based on interest rates and credit ratings.

• Examples of bonds include US Treasury bonds, corporate bonds, and municipal bonds.

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

• Derivatives can be used for hedging or speculation.

• Examples include futures, options, swaps, and forwards.

• Derivatives can be traded on exchanges or over-the-counter.

• They are often used by investors to manage risk or gain exposure to certain markets.

• Derivatives can be complex and involve significant risks.

A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets.

• Hedge funds are typically only available to accredited investors due to their complex and risky nature.

• They often use leverage and derivatives to amplify returns.

• Hedge funds charge both a management fee and a performance fee based on the fund's profits.

• They can invest in a wide range of assets including stocks, bonds, commodities, and...read more

IPO stands for Initial Public Offering. It is the first time a company's shares are offered to the public for purchase.

• IPO is a way for companies to raise capital by selling shares to the public

• It allows the public to invest in the company and become shareholders

• The process involves underwriters who help determine the price and market demand for the shares

• Examples of successful IPOs include Facebook, Alibaba, and Uber

Some well-known hedge funds include Bridgewater Associates, Renaissance Technologies, and Citadel.

• Bridgewater Associates

• Renaissance Technologies

• Citadel