40+ Equity Advisor Interview Questions and Answers

Interview questions about financial markets, stock market, derivatives, and indicators.

• Financial markets are broader than stock markets, which are a subset of financial markets.

• Stock market is a place where stocks are traded.

• PE (Price-to-Earnings) and PB (Price-to-Book) are valuation ratios used to evaluate stocks.

• Goal is to provide financial advice and help clients achieve their financial objectives.

• Derivatives are financial instruments whose value is derived from an underly...read more

The impact of a specific event on the market depends on various factors such as the nature of the event, its magnitude, and the market sentiment.

• The nature of the event: Is it political, economic, or social?

• The magnitude of the event: Is it a minor or major event?

• The market sentiment: Is the market bullish or bearish?

• Examples: Brexit, US-China trade war, COVID-19 pandemic.

• The impact can be positive or negative depending on the above factors.

Equity market deals with buying and selling of stocks while derivatives market deals with financial contracts based on underlying assets.

• Equity market involves buying and selling of shares of publicly traded companies

• Derivatives market involves financial contracts based on underlying assets such as stocks, bonds, commodities, etc.

• Equity market is more straightforward and less complex compared to derivatives market

• Derivatives market allows investors to hedge against potential ...read more

Shortselling is selling a security that the seller does not own, with the hope of buying it back at a lower price.

• Shortselling involves borrowing shares from a broker and selling them in the market.

• The seller hopes to buy back the shares at a lower price and return them to the broker, making a profit.

• CE and PE are options contracts used in derivatives trading.

• CE stands for Call Option, which gives the buyer the right to buy the underlying asset at a specified price.

• PE stands ...read more

Stock market and share market are terms used interchangeably to refer to the same financial market where securities like stocks are bought and sold.

• Both terms refer to the same financial market where securities like stocks are bought and sold

• Stock market is a broader term that encompasses all types of securities, while share market specifically refers to the market for shares of companies

• In some countries, the term 'stock market' is more commonly used, while in others 'share ...read more

A stock is a share in the ownership of a company, representing a claim on part of the company's assets and earnings.

• Stocks are bought and sold on stock exchanges.

• Investors buy stocks in the hope of making a profit from the company's growth and success.

• Stocks can be classified as common or preferred, with different rights and benefits.

• Examples of stocks include Apple Inc. (AAPL), Amazon.com Inc. (AMZN), and Microsoft Corporation (MSFT).

Yes, I have a strong understanding of the stock market.

• I have a degree in finance and have worked in the investment industry for 5+ years.

• I actively trade stocks and have experience analyzing financial statements and market trends.

• I stay updated on market news and regularly follow stock market indices like the S&P 500.

• I understand concepts like P/E ratios, dividends, and market volatility.

I currently hold accounts with 3 brokers.

• I have accounts with 3 different brokers.

• Each broker offers different investment options and services.

• Having multiple accounts allows me to diversify my investments.

• Examples: Charles Schwab, Fidelity, TD Ameritrade

Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.

• Financial markets facilitate the buying and selling of financial assets.

• They include stock markets, bond markets, currency markets, and commodity markets.

• Prices in financial markets are determined by supply and demand.

• Participants in financial markets include individual investors, institutional investors, and financial institutions.

• Regulatory bodi...read more

Understanding how the market works and investing involves analyzing trends, researching companies, and managing risk.

• Research market trends and economic indicators

• Analyze company financials and performance

• Diversify investments to manage risk

• Stay informed about current events and news that may impact the market

I have a good understanding of the stock market and its workings.

• I have studied finance and economics in college

• I regularly follow financial news and updates

• I have invested in stocks and have experience in trading

• I understand the concepts of risk and return

• I am familiar with different types of stocks and investment strategies

I primarily trade in the technology, healthcare, and consumer goods segments.

• Technology sector - stocks like Apple, Microsoft, and Amazon

• Healthcare sector - companies like Johnson & Johnson, Pfizer, and Merck

• Consumer goods sector - companies like Procter & Gamble, Coca-Cola, and Walmart

The stock market is a platform where shares of publicly traded companies are bought and sold.

• Stock market is a place where investors can buy and sell shares of publicly traded companies.

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

• Stock prices are determined by supply and demand, influenced by various factors such as company performance, economic conditions, and investor sentiment.

• Investors can make profits by buying stocks at a lower price and sell...read more

I have a good understanding of the stock market and its trends.

• I am familiar with different types of markets such as bull and bear markets.

• I understand the impact of economic indicators on the market.

• I keep up with news and events that may affect the market.

• I am aware of the risks and benefits of investing in the market.

• I have experience in analyzing market trends and making informed investment decisions.

Capital market refers to a financial market where long-term securities like stocks and bonds are bought and sold.

• Capital market is a segment of the financial market where long-term securities are traded

• It provides a platform for companies and governments to raise funds for investment and growth

• Investors can buy and sell stocks, bonds, and other financial instruments in the capital market

• The capital market includes primary market (new securities issuance) and secondary market ...read more

Global market trends, economic conditions, and geopolitical events can impact Indian market through trade, investments, and currency exchange rates.

• Global economic conditions can affect demand for Indian exports and imports

• Geopolitical events can lead to fluctuations in stock prices and investor sentiment

• Changes in currency exchange rates can impact the cost of imports and exports

• Investor confidence in global markets can influence foreign investment in Indian markets

The stock market is a platform where buyers and sellers trade stocks, representing ownership in publicly traded companies.

• Stock market is a marketplace where stocks are bought and sold

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

• Investors can buy and sell stocks to potentially earn profits

• Stock market indices, like the S&P 500, track the performance of a group of stocks

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

Stocks are shares of ownership in a company that represent a claim on its assets and earnings.

• Stocks are financial instruments that are bought and sold on stock exchanges.

• Investors buy stocks to become partial owners of a company and potentially earn a share of its profits.

• Stocks can be categorized into different types such as common stocks and preferred stocks.

• Stock prices can fluctuate based on various factors including company performance, market conditions, and investor s...read more

I have over 5 years of trading experience in various markets including stocks, options, and forex.

• Started trading stocks in college and gained experience through trial and error

• Took courses on options trading to expand knowledge and improve strategies

• Participated in forex trading competitions to test skills under pressure

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 based on the performance of the underlying securities

• Mutual funds offer diversification and convenience for investors

• There are different types of mutual funds, such as equity funds, bond funds, and...read more

Family market refers to the target audience or demographic that a company focuses on for their products or services. Derivatives are financial instruments whose value is derived from an underlying asset.

• Family market is the specific group of consumers that a company aims to reach with their products or services.

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

• Examples of derivatives include ...read more

PE ratio is calculated by dividing the current stock price by the earnings per share (EPS).

• PE ratio = Current Stock Price / Earnings Per Share (EPS)

• It is used to evaluate the valuation of a company's stock.

• A high PE ratio may indicate that a stock is overvalued, while a low PE ratio may indicate undervaluation.

Shares/SIP/Mutual fund are different investment options in the financial market.

• Shares represent ownership in a company and can be bought and sold on stock exchanges.

• SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds.

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

• Shares offer potential for high returns but come with higher risk, while mutual funds offer diversification and prof...read more

Stock market is a platform where buying, selling, and issuing of shares of publicly-held companies take place.

• Stock market allows companies to raise capital by selling shares to investors.

• Investors can buy and sell shares of publicly-traded companies through stock exchanges like NYSE and NASDAQ.

• Stock prices fluctuate based on supply and demand, company performance, economic factors, and market sentiment.

Some popular stocks include Apple, Amazon, and Tesla.

• Apple (AAPL)

• Amazon (AMZN)

• Tesla (TSLA)

Future & Options are financial instruments that derive their value from an underlying asset and allow investors to speculate on price movements.

• Future contracts obligate the buyer to purchase an asset at a specific price on a future date.

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time frame.

• Investors use futures and options for hedging, speculation, and arbitrage.

• Example: Buying a futures contr...read more

Option Greek refers to a set of risk measures used in options trading to assess the sensitivity of an option's price to various factors.

• Option Greek includes measures such as Delta, Gamma, Theta, Vega, and Rho.

• Delta measures the change in option price relative to the change in the underlying asset's price.

• Gamma measures the rate of change of Delta.

• Theta measures the effect of time decay on the option's price.

• Vega measures the sensitivity of the option price to changes in impl...read more

Share market is a platform where buying and selling of company stocks and securities takes place.

• Share market allows companies to raise capital by selling shares to investors

• Investors can buy and sell shares to make profits

• Prices of shares are determined by supply and demand in the market

• Share market can be volatile and influenced by various factors like economic conditions, company performance, and global events

It's a fav stock due to its consistent growth and strong financials.

• Consistent growth in revenue and earnings

• Strong financials with low debt and high liquidity

• Positive industry outlook and market position

• Good dividend yield and shareholder returns

• Example: Apple Inc. (AAPL)

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.

• For example, a stock option gives the holder the right to buy or sell a stock at a specified price within a certain time frame.

The expected CTC (Cost to Company) is the anticipated salary package that the company is willing to offer to the Equity Advisor.

• The expected CTC is usually discussed during the interview process to ensure that both the candidate and the company are aligned on salary expectations.

• It is important for the candidate to research the industry standards and salary ranges for Equity Advisors to negotiate a fair compensation package.

• Factors such as experience, qualifications, job resp...read more

An equity market is a platform where shares of publicly traded companies are bought and sold.

• Equity markets provide a way for companies to raise capital by selling shares to investors.

• Investors can buy and sell shares of companies on the stock exchange.

• Prices of shares in the equity market are determined by supply and demand.

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

Bull and bear are terms used in the financial market to describe the direction of the market.

• Bull market refers to a rising market where investors are optimistic and buying, expecting prices to continue to rise.

• Bear market refers to a falling market where investors are pessimistic and selling, expecting prices to continue to fall.

• Bullish investors believe the market will go up, while bearish investors believe it will go down.

• The terms originated from the way each animal attac...read more

Stock market is a platform where securities like stocks and bonds are bought and sold.

• Stock market is a place where investors can buy and sell shares of publicly traded companies.

• Prices of stocks are determined by supply and demand in the market.

• Stock exchanges like NYSE and NASDAQ are examples of platforms where stock trading takes place.

Equity market refers to the market where shares of publicly traded companies are bought and sold.

• Equity market is also known as stock market.

• It provides a platform for companies to raise capital by selling shares to investors.

• Investors can buy and sell shares through stock exchanges like NYSE, NASDAQ, and others.

Futures are contracts to buy or sell assets at a specified price on a future date, while options give the holder the right but not the obligation to buy or sell assets at a specified price within a certain time frame.

• Futures involve an obligation to buy or sell the underlying asset at a specified price on a future date, while options provide the holder with the right but not the obligation to buy or sell the asset at a specified price within a certain time frame.

• Futures are s...read more

Nifty50 is an index that represents the performance of the top 50 companies listed on the National Stock Exchange of India.

• Nifty50 is a stock market index in India.

• It consists of 50 actively traded stocks from various sectors.

• It is used as a benchmark to measure the performance of the Indian stock market.

• Some of the companies included in Nifty50 are Reliance Industries, HDFC Bank, Infosys, and Tata Consultancy Services.

My favorite stock is Amazon.

• Amazon has consistently shown strong growth and innovation in various industries.

• Their e-commerce platform dominates the market and their cloud computing division is a major player.

• Amazon's acquisition of Whole Foods and entry into the healthcare industry shows their willingness to expand and disrupt.

• Their leadership under Jeff Bezos has been impressive, with a focus on long-term growth rather than short-term profits.

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 are traded on exchanges or over-the-counter (OTC) markets.

• Example: A call option on a stock gives the holder the right to buy the stock at a specified pr...read more