40+ Glanciel Remedies Interview Questions and Answers

Hedge funds are alternative investment vehicles that use various strategies to generate high returns. Valuation is the process of determining the worth of an asset. Management fee is a fee charged by hedge fund managers for managing the fund.

• Hedge funds are not regulated by the SEC and are only available to accredited investors.

• Valuation can be done using various methods such as discounted cash flow, market multiples, and precedent transactions.

• Management fee is typically cal...read more

NAV calculation and bank reconciliation are important processes in finance.

• NAV calculation involves determining the net asset value of a fund or investment portfolio.

• Bank reconciliation is the process of comparing a company's bank statement with its own accounting records to ensure accuracy.

• NAV calculation is important for investors to understand the value of their investments.

• Bank reconciliation helps identify discrepancies and errors in financial records.

• Both processes requ...read more

Derivatives are financial contracts that derive their value from an underlying asset. Futures and options are types of derivatives. OTC stands for over-the-counter.

• Derivatives are used for hedging or speculation.

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

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price and date in the future.

• OTC refers to trades that are not conducted ...read more

Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price.

• Options can be used for hedging or speculation

• They have an expiration date

• There are two types of options: call options and put options

• The price of an option is determined by factors such as the underlying asset price, strike price, time to expiration, and volatility

• Options can be traded on exchanges or over-the-counter

Explaining the difference between Mid, Bid, and Ask prices and providing examples of corporate actions.

• Mid price is the average of Bid and Ask prices

• Bid price is the highest price a buyer is willing to pay for a security

• Ask price is the lowest price a seller is willing to accept for a security

• Corporate actions are events that affect a company's stock price, such as dividends, stock splits, and mergers

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

• Stock sp...read more

Current CTC is confidential. Expecting a competitive salary based on industry standards and my experience.

• Current CTC is confidential and not disclosed during interviews

• Expecting a competitive salary based on industry standards and my experience

• Open to negotiation based on the job role and responsibilities

Financial products are instruments that help individuals and organizations manage their money and investments.

• Financial products include savings accounts, stocks, bonds, mutual funds, and insurance policies.

• The process of financial products involves researching, selecting, purchasing, and monitoring investments.

• Investors must consider factors such as risk tolerance, investment goals, and time horizon when choosing financial products.

Stock market offers a wide range of products including stocks, bonds, mutual funds, ETFs, and options.

• Stocks represent ownership in a company and offer potential for capital appreciation and dividends.

• Bonds are debt securities that offer fixed interest payments and return of principal at maturity.

• Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets.

• ETFs are similar to mutual funds but trade like stocks on an ex...read more

Capital markets involve buying and selling of securities, investment banking is a service that helps companies raise capital, and reconciliation is the process of comparing financial records to ensure accuracy.

• Capital markets involve trading of stocks, bonds, and other securities

• Investment banking involves underwriting and issuing securities, as well as providing advisory services to clients

• Reconciliation involves comparing financial records to identify discrepancies and ensu...read more

Corporate action refers to any event initiated by a company that brings a change to its securities. Dividend is a payment made by a company to its shareholders.

• Corporate action includes events like stock splits, mergers, acquisitions, spin-offs, etc.

• Dividend is a portion of a company's profits paid to its shareholders as a reward for their investment.

• Dividends can be paid in cash or in the form of additional shares.

• Dividend yield is the percentage of the current stock price t...read more

Financial derivatives are contracts between two parties that derive their value from an underlying asset or security.

• Types of financial derivatives include futures, options, swaps, and forwards.

• Futures contracts obligate the buyer to purchase an asset at a specific price and time in the future.

• Options contracts give the buyer the right, but not the obligation, to buy or sell an asset at a specific price and time in the future.

• Swaps involve exchanging cash flows based on diffe...read more

Corporate Actions refer to events initiated by a publicly-traded company that can affect the stock's value.

• 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 a company's stock price and shareholder value

• Investors need to stay informed about Corporate Actions to make informed investment decisions

Fictitious assets are intangible assets with no physical existence. Transactions flow from journal entry to final accounts through various steps.

• Fictitious assets are intangible assets that do not have a physical presence, such as goodwill or deferred revenue.

• These assets are created due to accounting practices or transactions, but do not represent any tangible value.

• In the books of accounts, transactions start with journal entries where the debit and credit sides are recorde...read more

NAV stands for Net Asset Value, which is the value of a fund's assets minus its liabilities. Capital markets are where securities are bought and sold. Options, futures, and derivatives are financial instruments. Hedge and private equity funds are types of investment funds.

• NAV is calculated to determine the value of a fund's assets and to provide investors with an accurate picture of the fund's performance.

• Capital markets are where stocks, bonds, and other securities are bough...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.

• There are different types of mutual funds, including equity funds, bond funds, money market funds, and index funds.

• Equity funds invest in stocks, bond funds inves...read more

Mergers & Acquisitions involve the consolidation of companies through various financial transactions.

• Mergers involve two companies combining to form a new entity.

• Acquisitions involve one company purchasing another company.

• M&A can help companies expand their market share, diversify their products/services, or enter new markets.

• Example: Disney's acquisition of 21st Century Fox in 2019.

• Example: The merger of Exxon and Mobil in 1999.

Dividend is a distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or additional shares.

• Dividends can be paid in cash, stock, or property

• Common types of dividends include cash dividends, stock dividends, and property dividends

• Cash dividends are the most common type, where shareholders receive a portion of the company's profits in cash

• Stock dividends are paid out in additional shares of the company's stock

• Property dividends invol...read more

Capital markets are financial markets where companies and governments can raise funds through the issuance and trading of securities.

• OTC (over-the-counter) refers to the trading of securities directly between two parties without the involvement of an exchange.

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

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

• Capital markets can incl...read more

Private equity is a type of investment where funds are raised from high net worth individuals and institutions to invest in private companies.

• Private equity firms buy and sell companies, often with the goal of improving their operations and profitability before selling them for a profit.

• Private equity investments are typically illiquid and have a long-term investment horizon.

• Private equity firms may also provide operational and strategic support to the companies they invest i...read more

Private equity and hedge funds differ in investment strategies, fee structures, and liquidity.

• Private equity invests in private companies and seeks to actively manage and grow them, while hedge funds invest in various assets and use different strategies to generate returns.

• Private equity typically charges a management fee based on committed capital, while hedge funds charge a management fee based on assets under management.

• Private equity often has a carried interest or perfor...read more

Derivatives are financial contracts that derive their value from an underlying asset or security. Financial markets are platforms where buyers and sellers trade financial assets.

• Derivatives are contracts between two parties that derive their value from an underlying asset or security

• They can be used for hedging or speculation

• Examples include futures, options, and swaps

• Financial markets are platforms where buyers and sellers trade financial assets

• They can be physical or virtua...read more

Products in capital markets refer to financial instruments that are traded on stock exchanges or over-the-counter markets.

• Products can include stocks, bonds, options, futures, and exchange-traded funds (ETFs).

• They are used by investors to diversify their portfolios and manage risk.

• Products can be categorized by asset class, sector, geography, or other criteria.

• Examples of products include Apple stock, US Treasury bonds, S&P 500 index futures, and gold ETFs.

Corporate actions refer to events initiated by a public company that can affect the securities issued by the company.

• Types of corporate actions include dividends, stock splits, mergers and acquisitions, rights issues, and bonus issues.

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

• Stock splits involve dividing existing shares into multiple shares to lower the price per share.

• Mergers and acquisitions occur when two companies combine or one company takes o...read more

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

• Derivatives can be used for hedging or speculation

• Examples include options, futures, 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 played a role in the 2008 financial crisis

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

• Investment banks act as intermediaries between issuers of securities and investors.

• They provide services such as underwriting, mergers and acquisitions, and securities trading.

• Examples of investment banks include Goldman Sachs, JPMorgan Chase, and Morgan Stanley.

Golden rule of accounting states that debit what comes in and credit what goes out. Capital market is a financial market where long-term debt or equity-backed securities are bought and sold.

• Golden rule of accounting: Debit what comes in, credit what goes out

• Capital market is where long-term debt or equity-backed securities are traded

• Provides a platform for companies to raise capital through issuing stocks or bonds

• Investors can buy and sell securities such as stocks, bonds, an...read more

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

• 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 securities

• Mutual funds offer diversification and convenience for investors

• There are different types of mutual funds, including equity funds, bond fun...read more

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

• Derivatives can be used for hedging or speculation.

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

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

• Derivatives can be complex and involve significant risk.

• Derivatives played a role in the 2008 financial crisis.

Management is the process of planning, organizing, leading, and controlling resources to achieve specific goals.

• Management involves planning, which includes setting goals and determining the best course of action to achieve them.

• Organizing involves arranging resources and tasks in a structured way to achieve the goals effectively.

• Leading involves motivating and guiding employees towards the common goals.

• Controlling involves monitoring progress, comparing it with goals, and ma...read more

A bond is a debt security that represents a loan made by an investor to a borrower, typically issued by corporations or governments. Corporate action refers to any event initiated by a publicly-traded company that affects its shareholders.

• Bonds are issued by corporations or governments to raise capital

• Investors buy bonds as a form of fixed income investment

• Bonds have a maturity date and pay interest to the investor

• Corporate actions can include stock splits, mergers, acquisiti...read more

Equity is the ownership of assets after liabilities are paid off. Derivatives are financial contracts that derive their value from an underlying asset.

• Equity represents the residual value of assets after liabilities are paid off

• Derivatives are financial contracts that derive their value from an underlying asset

• Examples of derivatives include futures, options, and swaps

A swap is a financial derivative contract where two parties exchange financial instruments.

• Types of swaps include interest rate swaps, currency swaps, and commodity swaps

• Interest rate swaps involve exchanging fixed interest rate payments for floating interest rate payments

• Currency swaps involve exchanging principal and interest payments in one currency for another currency

• Commodity swaps involve exchanging cash flows based on the price of a commodity

Hedge funds are actively managed investment funds that use various strategies to generate returns, while P/E (price-to-earnings) ratio is a valuation metric used to assess a company's stock price relative to its earnings.

• Hedge funds are typically only available to accredited investors and have higher fees compared to traditional investment funds.

• P/E ratio is calculated by dividing the current stock price by the earnings per share (EPS) of a company.

• Hedge funds often use lever...read more

Unrealized profit is the profit that has been earned on paper but has not been realized through a sale or transaction.

• Unrealized profit is also known as paper profit or book profit.

• It is the profit that exists on paper due to an increase in the value of an asset, but has not been realized through a sale.

• For example, if you own a stock that has increased in value but you have not sold it yet, the profit you would make upon selling it is considered unrealized profit.

A custodian is a person or entity responsible for safeguarding and managing assets or property on behalf of others.

• Custodians can be individuals, banks, or other financial institutions.

• They are responsible for the safekeeping of assets such as securities, cash, and other valuables.

• Custodians may also provide additional services such as trade settlement, asset servicing, and reporting.

• Examples of custodians include State Street, BNY Mellon, and JP Morgan.

• Custodians play a crit...read more

NAV stands for Net Asset Value and is the value of a fund's assets minus its liabilities.

• NAV is used to determine the value of a mutual fund or exchange-traded fund (ETF).

• It is calculated by subtracting the fund's liabilities from its assets and dividing by the number of outstanding shares.

• NAV is typically calculated at the end of each trading day.

• Investors can use NAV to determine the price at which they can buy or sell shares of the fund.

• NAV can also be used to compare the ...read more

NAV stands for Net Asset Value and is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.

• NAV is a measure of the value of a mutual fund, ETF, or other investment vehicle

• It is calculated by subtracting the fund's liabilities from its assets and dividing by the number of outstanding shares

• NAV is typically calculated at the end of each trading day

• For example, if a mutual fund has $100 million in assets and $10 million in liabilitie...read more

Bonds are debt securities issued by companies or governments to raise capital. There are various types of bonds including corporate bonds, municipal bonds, and treasury bonds.

• Bonds are essentially loans that investors give to companies or governments in exchange for periodic interest payments and the return of the bond's face value at maturity.

• Corporate bonds are issued by corporations to raise capital for various purposes such as expansion or acquisitions.

• Municipal bonds are...read more

I have a Bachelor's degree in Economics and 5 years of experience in financial analysis.

• Bachelor's degree in Economics

• 5 years of experience in financial analysis

• Proficient in Excel and financial modeling

• Experience in budgeting and forecasting

• Strong analytical and problem-solving skills

Fair value table is a financial tool used to determine the fair value of assets and liabilities.

• Fair value table lists the fair values of assets and liabilities based on market prices or valuation models.

• It helps in assessing the financial health and performance of a company.

• Fair value table is commonly used in financial reporting and analysis.

• Example: A fair value table may include the fair values of investments, real estate properties, and financial instruments.

Swap involves exchanging cash flows between two parties, while an option gives the holder the right but not the obligation to buy or sell an asset at a specified price.

• Swap involves exchanging cash flows between two parties based on predetermined terms and conditions.

• Options give the holder the right but not the obligation to buy or sell an asset at a specified price within a specified period.

• Swaps are typically used for managing interest rate or currency risk, while options ...read more

Golden rules of accounting are basic principles to maintain accurate financial records.

• The first golden rule is to maintain a record of all financial transactions.

• The second golden rule is to maintain a record of all assets and liabilities.

• The third golden rule is to ensure that all financial transactions are recorded accurately.

• The fourth golden rule is to ensure that all financial records are kept up-to-date.

• The fifth golden rule is to ensure that all financial records are ...read more

An equity is a type of security that represents ownership in a company.

• Equities are also known as stocks or shares.

• Investors who own equities are entitled to a portion of the company's profits and assets.

• Equities can be traded on stock exchanges, and their value can fluctuate based on market conditions and the performance of the company.

• Examples of companies with equities include Apple, Amazon, and Microsoft.

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

• Calculate the total value of assets

• Subtract the total value of liabilities

• Divide the result by the number of outstanding shares

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

GAAP principles are a set of accounting standards used to ensure consistency and transparency in financial reporting.

• GAAP stands for Generally Accepted Accounting Principles

• GAAP principles provide guidelines for recording and reporting financial information

• Examples of GAAP principles include the matching principle, revenue recognition principle, and historical cost principle