Financial Research Analyst Interview Questions and Answers

I would like to change the current slab rates of income tax to make them more progressive and equitable.

• I believe the current slab rates of income tax are not adequately progressive, leading to a heavier burden on lower income individuals.

• I would propose increasing the tax rates for higher income brackets to ensure a more equitable distribution of tax burden.

• Implementing more tax brackets and adjusting the rates accordingly can help in achieving a fairer tax system.

• Introducin...read more

Primary markets are where new securities are issued for the first time, while secondary markets are where existing securities are bought and sold.

• Primary markets involve the issuance of new securities by companies or governments to raise capital.

• Secondary markets involve the buying and selling of existing securities among investors.

• Primary markets provide capital to companies, while secondary markets provide liquidity to investors.

• Examples of primary markets include initial p...read more

The balance sheet deals with a company's assets, liabilities, and equity at a specific point in time.

• The balance sheet provides a snapshot of a company's financial position at a specific point in time.

• It includes assets (such as cash, inventory, and property), liabilities (such as loans and accounts payable), and equity (such as retained earnings and stockholders' equity).

• The balance sheet equation is Assets = Liabilities + Equity.

• It helps investors, analysts, and creditors a...read more

SWOT analysis is a strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats of a business or project.

• Strengths: internal factors that give an advantage (e.g. strong brand reputation)

• Weaknesses: internal factors that may hinder success (e.g. high employee turnover)

• Opportunities: external factors that could be beneficial (e.g. new market trends)

• Threats: external factors that could cause trouble (e.g. competition)

Stock split is when a company divides its existing shares into multiple shares to lower the price per share.

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

• It does not change the overall market capitalization of the company.

• Common stock split ratios include 2-for-1, 3-for-1, or 3-for-2.

• Investors who own shares before the split will receive additional shares after the split.

• Stock splits are usually seen as a positive sign by investor...read more