Depository Operations Executive Interview Questions and Answers

Insurance is not an investment but a risk management tool.

• Insurance is a contract between an individual and an insurance company to provide financial protection against specified risks.

• It involves paying premiums in exchange for coverage against potential losses or damages.

• The purpose of insurance is to mitigate the financial impact of unexpected events, such as accidents, illnesses, or property damage.

• Unlike investments, insurance does not generate returns or profits.

• Insuran...read more

EBIT stands for Earnings Before Interest and Taxes.

• EBIT is a financial metric used to measure a company's profitability before accounting for interest and taxes.

• It is calculated by subtracting a company's operating expenses (excluding interest and taxes) from its revenue.

• EBIT helps investors and analysts assess a company's operational performance and compare it to other companies in the same industry.

• For example, if a company has a revenue of $1 million and operating expenses...read more

EPS (Earnings Per Share) is calculated by dividing the company's net income by the number of outstanding shares.

• EPS = Net Income / Outstanding Shares

• Net income is the company's total earnings after deducting expenses and taxes

• Outstanding shares refer to the total number of shares held by investors

• EPS is an important financial metric used to assess a company's profitability and performance

• Higher EPS indicates higher profitability and potential for higher dividends

• Example: If a...read more