Statestreet HCL Services Associate Interview Questions, Process, and Tips

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

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

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

• Derivatives allow investors to take positions on the price movements of assets without actually owning the assets.

• For example, a call option gives the holder the right to buy an as...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

• Investors can buy shares of mutual funds, which represent their ownership in the fund's portfolio.

• Mutual funds offer diversification, liquidity, and professional management to invest...read more

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 typically use a variety of strategies to achieve high returns, including leveraging, short selling, and derivatives trading.

• They are often managed aggressively and aim to generate high returns regardless of market conditions.

• Hedge funds charge both a management fee ...read more

NAV is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.

• Calculate the total value of assets in the fund

• Subtract any liabilities from the total assets

• Divide the result by the number of outstanding shares to get the NAV

• NAV = (Total Assets - Liabilities) / Number of Outstanding Shares

Corporate actions are events initiated by a public company that can affect the stock price and shareholders.

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

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

• Stock splits increase the number of shares outstanding but decrease the price per share.

• Mergers involve two companies combining into one.

• Acquisitions occu...read more

Reconciliation is the process of ensuring two sets of records are in agreement and accurate.

• Reconciliation involves comparing financial records to ensure they match up

• It is commonly used in accounting to verify transactions and balances

• Reconciliation can also refer to resolving differences or conflicts between individuals or groups

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

• Trade initiation: Trade is proposed and agreed upon by parties involved.

• Trade execution: Trade is executed on the market.

• Trade confirmation: Parties confirm the details of the trade.

• Trade settlement: Payment and transfer of securities occur.

• Trade reconciliation: Ensuring all details match between parties.

• Trade reporting: Reporting t...read more

Money market deals with short-term debt securities, while capital market deals with long-term securities.

• Money market involves short-term borrowing and lending, typically less than one year.

• Capital market involves long-term borrowing and lending, typically more than one year.

• Money market securities include Treasury bills, commercial paper, and certificates of deposit.

• Capital market securities include stocks, bonds, and