100+ Megha Engineering & Infrastructures 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

Trade life cycle includes pre-trade, trade execution, trade confirmation, settlement, and accounting. It functions in various types of trades.

• Trade life cycle involves pre-trade, trade execution, trade confirmation, settlement, and accounting

• It functions in various types of trades such as equity, fixed income, foreign exchange, and derivatives

• In equity trading, the trade life cycle starts with the order placement and ends with the settlement of the trade

• In foreign exchange tr...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

Capital market, money markets, money market instruments, derivatives and types of derivatives explained.

• Capital market refers to the market for long-term securities such as stocks and bonds.

• Money market refers to the market for short-term securities such as treasury bills and commercial paper.

• Money market instruments are short-term debt securities with high liquidity and low risk.

• Derivatives are financial instruments whose value is derived from an underlying asset or security...read more

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

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

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

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

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

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 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

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

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

Balance sheet and profit and loss items are financial statements that show a company's assets, liabilities, income, and expenses.

• Balance sheet shows a company's assets, liabilities, and equity at a specific point in time

• Profit and loss statement shows a company's revenue, expenses, and net income over a period of time

• Examples of balance sheet items include cash, accounts receivable, inventory, and long-term debt

• Examples of profit and loss items include sales revenue, cost of ...read more

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

• It includes stock market and bond market.

• Companies raise capital by issuing stocks and bonds.

• Investors buy and sell securities in the market.

• The market is regulated by government agencies like SEC in the US.

• Examples of capital markets include NYSE, NASDAQ, and London Stock Exchange.

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

Investing in stocks can provide potential for high returns and portfolio diversification.

• Potential for high returns: Stocks have historically provided higher returns compared to other investment options like bonds or savings accounts.

• Portfolio diversification: Investing in stocks can help spread risk across different assets and sectors.

• Dividend income: Some stocks pay dividends, providing a source of passive income for investors.

• Ownership in companies: Buying stocks means own...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

Derivatives, futures, swaps, and bonds are financial instruments used in investment and risk management.

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

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

• Swaps are agreements between two parties to exchange cash flows or liabilities based on predetermined terms.

• Bonds are debt securities issued by governments or corporations ...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).

Primary market is where new securities are issued and sold for the first time.

• It is also known as the new issue market.

• Companies raise capital by issuing new stocks or bonds in the primary market.

• Investors can buy these securities directly from the issuer.

• Examples include IPOs and bond offerings.

• Primary market transactions are facilitated by investment banks.

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

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

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

• Provides financial advice to clients

• Assists in mergers and acquisitions

• Underwrites and issues securities

• Helps companies raise capital through IPOs

• Examples: Goldman Sachs, JPMorgan Chase, Morgan Stanley

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.

I am a finance professional with expertise in capital markets. Shares represent ownership in a company.

• I have a background in finance and specialize in capital markets

• Shares are units of ownership in a company, representing a claim on its assets and earnings

• Shareholders have voting rights and may receive dividends based on company performance

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

Capital market refers to a financial market where individuals and institutions trade financial securities.

• It is a market for buying and selling long-term debt and equity instruments

• It provides a platform for companies to raise capital by issuing stocks and bonds

• Investors can trade securities such as stocks, bonds, and derivatives in the capital market

• Examples include stock exchanges like NYSE and NASDAQ, bond markets, and derivatives markets

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

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

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

A bond is a debt security that represents a loan made by an investor to a borrower, typically a corporation or government.

• Bonds are issued by companies or governments to raise capital.

• Investors buy bonds and receive regular interest payments until the bond matures.

• At maturity, the investor receives the principal amount of the bond.

• Bonds are rated by credit rating agencies based on the issuer's creditworthiness.

• Higher-rated bonds are considered less risky and typically offer l...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

Trade life cycle refers to the stages involved in the execution and settlement of a trade in the financial markets.

• Trade initiation: The process begins when a trader decides to buy or sell a financial instrument.

• Order placement: The trader places an order with a broker or through an electronic trading platform.

• Order execution: The order is matched with a counterparty and executed at the prevailing market price.

• Trade confirmation: Both parties receive a confirmation of the exe...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

Capital markets are financial markets where long-term debt or equity securities are bought and sold.

• Capital markets facilitate the buying and selling of long-term financial instruments such as stocks and bonds.

• They provide a platform for companies and governments to raise funds for projects or operations.

• Investors can buy securities in the primary market or trade them in the secondary market.

• Examples include stock exchanges like NYSE and NASDAQ, as well as bond markets.

• Capita...read more

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.

Types of capital market include primary and secondary markets, equity and debt markets, and money and capital markets.

• Primary market: where new securities are issued for the first time

• Secondary market: where existing securities are bought and sold

• Equity market: where stocks are traded

• Debt market: where bonds and other debt securities are traded

• Money market: where short-term debt securities are traded

• Capital market: where long-term debt and equity securities are traded

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.

Preliminary expenses are costs incurred before a company starts its operations, such as incorporation fees, legal expenses, and pre-opening marketing costs.

• Preliminary expenses are one-time costs associated with setting up a new business.

• These expenses are typically incurred before the company starts generating revenue.

• Examples of preliminary expenses include incorporation fees, legal expenses, pre-opening marketing costs, and expenses related to obtaining necessary licenses ...read more

Financial market is a platform where buyers and sellers trade financial securities, commodities, and other fungible items.

• Financial markets facilitate the exchange of assets such as stocks, bonds, currencies, and derivatives.

• They provide a platform for companies to raise capital through issuing stocks and bonds.

• Investors can buy and sell financial instruments to earn profits or hedge against risks.

• Examples include stock exchanges like NYSE and NASDAQ, commodity markets, and f...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

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

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

Yes, I am comfortable with rotational shifts.

• I have previous experience working in rotational shifts

• I understand the importance of maintaining a healthy work-life balance

• I am willing to adjust my schedule to accommodate the shifts

• I am aware of the potential challenges of working in rotational shifts and am prepared to handle them

Confirmation and settlement are important parts of trade life cycle.

• Trade initiation

• Trade execution

• Confirmation

• Clearing and settlement

• Trade reporting

• Reconciliation

• Risk management

• Regulatory compliance

A balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• The left side of the balance sheet shows the company's assets, which are resources that the company owns or controls.

• The right side of the balance sheet shows the company's liabilities, which are obligations that the company owes to others.

• The difference between the assets and liabilities is the company's equity, which represents the residual interest in the assets after deducting li...read more

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

• Bridgewater Associates

• Renaissance Technologies

• Citadel

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

I would address team and process discrepancies by identifying root causes, implementing corrective actions, and communicating with oversight team for error resolution.

• Identify root causes of team and process discrepancies

• Implement corrective actions to address the discrepancies

• Communicate effectively with oversight team to resolve errors

• Provide training and support to team members to prevent future discrepancies

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

A stock split is a corporate action in which a company divides its existing shares into multiple shares.

• Stock split increases the number of shares outstanding while reducing the price per share.

• The total value of the shares remains the same.

• For example, a 2-for-1 stock split would double the number of shares outstanding and halve the price per share.

• Stock splits are usually done to make shares more affordable for investors and increase liquidity.

• Stock splits do not affect the...read more

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

The Billing SLA's in my prior organization were 95% accuracy and 24-hour turnaround time.

• Prior organization had a 95% accuracy rate for billing

• Turnaround time for billing was 24 hours

• SLA's were consistently met through efficient processes and communication

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 on leverage and potentially increase returns

• Derivatives are traded on exchanges or over-the-counter markets

Financial markets refer to 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 liquidity and price discovery for financial assets.

• Examples include stock exchanges like NYSE and NASDAQ, bond markets, forex markets, and commodity markets.

Gain from equity shares mean the profit earned by an investor through an increase in the value of their shares.

• Gain from equity shares is the difference between the selling price and the purchase price of the shares.

• It can also include dividends received by the investor.

• Investors can realize gains by selling their shares at a higher price than they bought them for.

• The gain can be calculated by subtracting the purchase cost from the selling price.

A spinoff is a corporate action where a company creates a new independent company by separating a part of its business.

• A spinoff can be done through a distribution of shares to existing shareholders of the parent company.

• The new company can have its own management team and board of directors.

• Spinoffs can be done to unlock value for shareholders or to focus on core businesses.

• Examples of spinoffs include PayPal from eBay and Dow from DowDuPont.

NAV is Net Asset Value, Journal Entries are records of financial transactions, Types of Shares include common and preferred, Return on Share is a measure of profitability, Tax on Dividend and Interest is applicable.

• NAV is calculated by subtracting liabilities from assets

• Journal Entries for Prepaid expenses involve debiting Prepaid Expense and crediting Cash or Accounts Payable

• Types of Shares include Common Shares and Preferred Shares

• Return on Share is calculated by dividing n...read more

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

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

• Futures contracts involve buying or selling an asset at a predetermined price and date.

• Options contracts 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.

• Forwards are similar to f...read more

A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, managed by a professional fund manager.

• Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities.

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

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

• They offer diversificat...read more

Equity represents ownership in a company, mutual funds pool money from multiple investors to invest in securities, and derivatives are financial contracts whose value is derived from an underlying asset.

• Equity is ownership in a company, represented by shares of stock

• Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities

• Derivatives are financial contracts whose value is derived from an underlying asset, such as options or futures

• Equi...read more

Financial industry offers a wide range of products including banking, insurance, investments, and loans.

• Banking products: savings accounts, checking accounts, credit cards, mortgages, loans

• Insurance products: life insurance, health insurance, property insurance, auto insurance

• Investment products: stocks, bonds, mutual funds, exchange-traded funds (ETFs), retirement accounts

• Loan products: personal loans, business loans, student loans, auto loans

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

• Investment banks act as intermediaries between issuers and investors.

• They provide advisory services on mergers and acquisitions, restructuring, and other financial transactions.

• Investment banks also engage in trading and market-making activities.

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

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 on leverage and potentially amplify returns.

• They can be used to manage risk by offsetting potential losses in one asset with gains in another.

• Derivatives are traded on exchanges or over-the-counter mark...read more

Equity represents ownership in a company and is calculated as assets minus liabilities.

• Equity is the value of an asset after deducting any liabilities associated with that asset.

• It represents the ownership interest in a company and can be in the form of common stock, preferred stock, or retained earnings.

• Equity can also refer to the value of a property or investment after subtracting any debts or mortgages.

• In accounting, equity is shown on the balance sheet as the difference ...read more

Yes, we use various applications for the process both internally and externally.

• Internally, we use tools like JIRA, Trello, and Asana for project management and task tracking.

• Externally, we use applications like Salesforce, Hubspot, and Marketo for customer relationship management and marketing automation.

• We also use specialized software for process automation, such as UiPath and Blue Prism.

• All applications are carefully selected based on their suitability for the specific pr...read more

Yes, I am comfortable with the location.

• I am open to working in different locations.

• I have experience working in diverse locations.

• I am willing to relocate if required.

• I have researched and familiarized myself with the location of the company.

Reconciliation is the process of comparing two sets of records to ensure they are in agreement.

• Reconciliation involves verifying and adjusting financial statements to match with bank statements.

• It is also used in relationships to resolve conflicts and differences.

• Examples include reconciling your checkbook with your bank statement or reconciling differences in a friendship.

• Reconciliation helps in identifying discrepancies and ensuring accuracy in records.

Gross domestic product (GDP) of India is the total value of all goods and services produced in the country in a year.

• India is one of the fastest growing major economies in the world.

• GDP is an important indicator of a country's economic health.

• In 2020, India's GDP contracted by 7.3% due to the impact of the COVID-19 pandemic.

• The GDP growth rate is calculated by comparing the GDP of one year to the GDP of the previous year.

Companies buy back their shares to increase shareholder value, signal confidence in the company, and reduce the number of outstanding shares.

• Increase shareholder value by reducing the supply of shares in the market

• Signal confidence in the company's future prospects

• Utilize excess cash effectively

• Boost earnings per share by reducing the number of outstanding shares

• Defend against hostile takeovers by making the company less attractive to potential acquirers

A derivative is a financial contract whose value is derived from the performance of an underlying asset, index, or interest rate.

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

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

• Derivatives allow investors to take leveraged positions in the market

• Derivatives are often used to manage risk in portfolios

Equity share represents ownership in a company, while debt holders are lenders who provide funds to the company.

• Equity share represents ownership in a company, giving shareholders voting rights and a share in profits.

• Debt holders are lenders who provide funds to the company in exchange for regular interest payments and eventual repayment of the principal amount.

• Equity shareholders bear the risk of the company's performance, while debt holders have a fixed claim on the company...read more

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

• Corporate actions can include stock splits, dividends, mergers and acquisitions, spin-offs, and rights issues.

• These actions can impact the stock price, trading volume, and shareholder value.

• For example, a company may announce a stock split, which increases the number of shares outstanding and reduces the price per share.

• Another example is a divid...read more