Investment Operations Analyst Interview Questions and Answers

Trade fails can lead to financial losses, operational disruptions, and reputational damage.

• Financial losses due to failed trades not settling as expected

• Operational disruptions caused by failed trades needing to be rectified

• Reputational damage from clients or counterparties due to failed trades

• Increased regulatory scrutiny and potential fines for failed trades

• Loss of trust and credibility in the market due to repeated trade failures

Trades impact NAV by changing the value of assets held in the fund, leading to fluctuations in the fund's overall value.

• Trades involve buying or selling securities within the fund's portfolio

• The value of these securities directly impacts the fund's Net Asset Value (NAV)

• Positive trades (buying low, selling high) can increase NAV, while negative trades can decrease NAV

• NAV is calculated by dividing the total value of the fund's assets by the number of outstanding shares