Technical Questions

• What are the three main financial statements and what kind of items are posted in
each?

• What are the 3 Golden Rules of Accountancy?

• Where is Profit and Loss posted in a balance sheet?

• What is depreciation and the method?

• What is BRS, with an example?

• What are the types of cash flows?

• Where does closing stock appears in the trial balance, concept of LIFO & FIFO?

• What is Window Dressing?

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• Types of Capital Market?

• What are Equity shares, Preference shares, Bonus shares, Bond, Debentures,
Dividend, Fixed Deposit?

• Why does one need a broker?

• What are Blue-Chip companies?

• How is SENSEX calculated?

• What is a Split and buy-back?

• What are Corporate Actions?

• What is corporate restructuring?

• What are micro-cap, small-cap, mid-cap, large-cap companies?

Mega Cap: $200+ billion, Big/Large Cap: $10 - 200 billion, Mid Cap: $2 - $10
billion, Small Cap: $300 million - $2 billion, Micro Cap: $50 - $300 million, Nano
Cap: <$50 million

• Total numbers of companies listed on NSE & BSE?

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• What is Dematerialisation and its benefits?

• What is a Depository & Depository Participant?

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 What is a mutual fund and its types?

 Concept of NAV and its formula?

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 Concept of Derivatives and types?

 Concept of forward/futures, call/put option, arbitrage, hedging, collateral

management?

 What is the concept of Loan Against Shares (LAS) & ALBM?

 Difference between a Fund manager, Investment manager, Portfolio manager &

Custodian manager?

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 What do you mean by 'Market Trades' and 'Off Market Trades'?

 What is T+2 rolling settlement cycle ?

 What does Pay-In and Pay-Out mean?

 What is an auction?

 Difference between money market and capital market?

Capital markets are for long term investments, companies are selling stocks
and bonds in order to borrow money from their investors whereas Money
markets are more of a short term borrowing or lending market where banks
borrow and lend between each other, as well as finance companies and
everything that is borrowed is usually paid back within thirteen month. Capital
markets the most common thing used is stocks and bonds, whereas with the
Money markets the most common things used are commercial paper and
certificates of deposits.
 Procedure and benefits of listing companies on the stock exchange

provide liquidity to securities; mobilize savings for economic development; protect

interest of investors by ensuring full disclosures

 Are mutual funds more risky than equity markets?

1) Authorized stock
The maximum number of shares of stock that a company can issue. It's specified initially in the
company's charter, but it can be changed with shareholder approval.

2) What is the meaning of duration and modified duration in fixed income markets and how
is it used?
Duration is a measure of the interest rate sensitivity of a bonds market price taking into
consideration its coupon and term to maturity. Modified duration is a measure of macaulay
duration divided by one plus the bonds periodic yield and is used to approximate the bonds price
volatility.

3) Is Russia an emerging country?

Yes

4) Which is the Apex Body of US?

Federal Reserve

5) What is capital market, stock market, share market? What is P/E (price earning
multiple, Book Value, Public offering price(POP)? Which market would you invest in –
primary or secondary - why?

6)What is meant by Ratio analysis?

7) What is meant by trade cycle? The 7 steps of matching order?

8) What is meant by diversification? Is it related to risk?

9) If dividends are declared on MFs, does NAV go up or down?

10) What do you mean by custodian, depository & types of depositories?

Aptitude Test
1) What is not a type of share: BOND
2) Which of the following will allow you voting rights: Common Stock
3) Which of the following is to be paid last on liquidation: Common Stock
4) CRR: 5%
5) Investing in mutual funds gets you voting rights in all share lot by the fund: False
6) Golden rules of accountancy
7) In accounting, goodwill means: Intangible value
8) What happens to a bond’s yield if the price of the bond rises:
9) If you hold ordinary shares of a blue chip company, you’ll get: Dividends
10) Which of the following statement is True: A stock is permitted to have a listing in
more than 1 exchange