Showing posts with label finance interview. Show all posts
Showing posts with label finance interview. Show all posts

Top 100 Finance Interview Questions

Top 100 Finance Interview Questions
Q: How would you choose to buy a particular stock?
Q: Why might a company choose debt over equity financing?
Q: Where is the market going?
Q: What major factors drive mergers and acquisitions?
Q: What is goodwill? How does it affect net income?
Q: What is working capital?
Q: What are deferred taxes?
Q:Can you describe a recent situation in which you accomplished an important objective in a brief period of time?
Q: How do you take challenges?
Q: Are you willing to work in shifts?
Q: What is the thing you like the most in the world? Why?
Q: What is the thing you dislike the most in the world? Why?
Q: What does success mean to you?
Q: How do you define failure?
Q: What is contingency liability?
Q: How do you value a company?
Q: You've been asked to reduce the budget by 8%. What criteria will you use in identifying the budget reductions?
Q: Who is a more senior creditor, a stockholder or a bondholder?
Q: What is the difference between accounts and finance?
Q: Explain fixed cost, variable cost and marginal cost?
Q: What is Break Even Point? What does it signify?
Q: What is the purpose of chargeback?
Q: What is MIS report and do you prepare it?
Q: Why are you leaving the organization you work for?
Q: How much time do you need to join the organization?
Q: Are you aggressive?
Q: What makes you a good manager?
Q: What motivates you the most?
Q: What skills and abilities do you have?
Q: Is there anything you want to ask?
Q:If you were hired for this job, what areas would you make an immediate impact?
Q:In what areas do you think you will need guidance?
Q:How will you approach learning this "new" job?
Q:How will you approach acquiring new skill sets?
Q:Describe the most difficult situation you have faced in your career and how you managed it.

Q:Describe some problems you encountered in your most recent position and ow you resolved them.
Q:What specific steps do you utilize in solving workplace problems?
Q: What experience have you had in fixed assets accounting?
Q: How can you create Budgets for daily pods?
Q: How to use special and pair value sets?
Q: What is consolidation ?
Q: Why depreciation is not charged on land?
Q: Can u explain me the flow in General ledger?
Q: What is meant by group chart of accounts in sap fico ?
Q: Describe yourself.
Q: Tell me about your educational background?
Q: What do you know about the organization?
Q: How do you justify the job?
Q: Why do you want this job?
Q: What do you want to work with this organization?
Q: Where do you see yourself five years down the line?
Q: What are your strengths?
Q: What is our company’s stock price? How would you forecast the future stock price for next year?
Q: How important does Accounts receivable for small business and why?
Q: What are the goals of Accounts receivable?
Q: What are the powerful softwares that could be used for doing efficient Accounts receivable?
Q: What are the strategies to be followed for preparing Accounts receivable?
Q: How debtors play its role in Accounts receivable?
Q: Who is responsible for maintaining the Accounts receivable in an organization?
Q: How important is Accounts receivable to business?
Q: What do you mean by Accounts payable cycle?
Q: What is Trial Balance?
Q: What is difference between account payable and bills payable?
Q: How to account freight cost, handling charges,purchase tax at the time of raising a Purchase Order?
Q: What is Reconciliation Statement ?
Q: How do you answer this question "what is company code".
Q: Is it necessary to create Sundry creditors?
Q: What is the meaning of TDS? How it is charged?
Q: What is interest on Capital?
Q: What is Pool rate?
Q: What the procedures or process involved in the preparation for the audit?
Q: What is Web Audit?
Q: What are the different types of internal audit?
Q: What is the difference between an internal audit and the annual external audit?
Q: What is Internal Audit?
Q: What is meant by Single Audit process?
Q: Where is Audit Data Stored?
Q: What is meant by computer auditing?
Q: What are the reasons for getting audited?
Q: What do 'income assessed' and 'non-income assessed' mean?
Q: What is authorized share capital?
Q: What is paid up share capital?
Q: How much depreciation to be calculated for fixed assets older than 5 years?
Q: What is accumulated depreciation?
Q: What are the journal entries which get passed from asset purchasing to asset retirement?
Q: What is fictitious assets?
Q: What is the difference between the different depreciation methods?
Q: What are the activities present in payroll task?
Q: What is Payroll Disbursements Journal?
Q: What are the steps in Payroll Management?
Q: What is the software efficient for carrying out payroll tasks?
Q: What is the difference between paycheck and Payslip?
Q: How advantage is payroll for small business?
Q: What is Payroll Journal?

Explain FIX protocol and FIX Engine

What is FIX protocol and FIX Engine?
FIX protocol is Industry standard protocol for electronic trading , with evolution with computer technology Trading also getting Electronic and now most of the exchanges in the world are fully electronic and concept of trading floor is taken over by computers. 

When I was new to FIX protocol I have searched net to find a good FIX protocol tutorial but not much is available so I am trying to write my own experience in form of short  FIX protocol tutorial.

In this blog post I would like to share my thoughts, experience and knowledge about FIX protocol which I had acquired by working on different areas of FIX.

FIX protocol is a tag value protocol where every field has a unique tag name and signify something e.g. Price (tag 44) denotes the price of a particular shares , OrderQty denotes quantity of order.
FIX protocol specify different types of messages for different trading purposes e.g. for Sending an Order to exchange they used NewOrderSingle message (MsgType=35) or for Sending a Cancel to exchange they used CancelOrder message (MsgType=F). MsgType (tag 35) and they message for all purpose of trade life cycle e..g they have pre trade message ( e.g. News , Indication of Interest ) , trade message (NewOrderSingle, OrderCancelReplaceRequest , OrderCancelRequest) and post trade message (e.g. Allocation messages).

To understand these FIX message client and broker, the two party involved in trading has a piece of software called FIX Engine. There are many commercial FIX engine available which is used in Industry e.g. Cameron FIX Engine, NYFIX's Appia etc.

Messages on FIX protocol can be broadly classified into two type’s first Session level message also called Admin messages and Second Application level messages. Session level messages is uesd to establish FIX session between two FIX engine and Application messages are messages which is meant for some purpose e..g NewOrderSingle message which is used to send order via FIX.

MsgType (tag 35) is an important tag in FIX protocol which is used to uniquely identify a FIX message. Every single message in FIX protocol must have corresponding MsgType otherwise FIX engine will reject those messages saying it’s not a valid FIX message.

As per FIX protocol connection between two FIX engine is called FIX session and every FIX session has pre agreed host/port and comp id. Since a single FIX engine can be used to server multiple clients on broker side every client is uniquely identified  by combination of IP , port and there Comp IDs , Comp IDs are combination of SenderCompID and TargetCompID which are two separate tag in FIX protocol.
Once FIX Session established now client can send Orders via FIX and broker then send it exchange for execution.

I will try to keep it updated with relevant information, please ask if you have any questions, doubt etc.

Happy learning and welcome to FIX protocol world :)



What is an Exchange?

What is an Exchange?Exchange – An exchange is a highly organized market where (especially) tradeble securities, commodities, foreign exchange, futures and options contracts are sold and bought. Exchange brings together brokers and dealers who buy and sell these objects.
Examples of exchanges are Bombay Stock Exchange, NeyWork Stock Exchange (NYSE), Tokyo Stock Exchange (TSE)  


Experienced Finance Interview Questions for Job Interview

MBA Finance Interview Questions at job Interview
Q:Tell me about your educational background?
Q:What do you know about the organization?
Q:How do you justify the job?
Q:Why do you want this job?
Q:What do you want to work with this organization?
Q:Where do you see yourself five years down the line?
Q: What are your strengths?
Q: What is our company’s stock price? How would you forecast the future stock price for next year?
Q: How would you choose to buy a particular stock?
Q: Why might a company choose debt over equity financing?

Finance Interview Questions

Finance Interview Questions
General Questions
Define free cash flow.
Define EVA.
How do you measure Return on Invested Capital?
What is the difference (and advantages/disadvantages) between purchase and pooling accounting methods?
What do you think about the market?/Talk to me about the stock market.
Tell me about some investment books you’ve read lately.
Fixed Income
Graph the price yield relationship of bonds.
What is duration/Macaulry duration/Modified duration? Show me.
What is convexity?
The following are prices of four different bonds: 25, 23, 22, 24. Assuming that you can sell or buy these bonds at no cost, if you know that tomorrow, three of them will go to 0 and one of them, 100, how would you arbitrage? (buy them all)
How would you explain credit spread?
Currency - Foreign Exchange
If the yen/dollar exchange rate is 100yen/$ today and the one year forward rate is 105yen/$, what does this simply?
One plus one half plus one fourth plus one eighth . . . gets closer to a certain number. What is the number and why?
What is the yen/dollar exchange rate today? Where do you think it will be in one year and why?
(After knowing that the interviewee knows the basics of options) If an exporting company wants to pay no more than 110 yen to a dollar and no less than 90 yen to a dollar in 3 months, how would you use option instruments to hedge their position?
Would a price of a call option go up or down when the maturity of the option is longer?
(After knowing that the interviewee took econometrics) What is econometrics? Could you go through the calculation to do regression analysis?
Investment Management
(for fixed income) What does the yield curve look like today and what would be your investment strategy? Valuation questions (look under investment banking)
Tell me about your own portfolio. What is your investment strategy? (answer in technical terms)
If you are given a market or an industry, what would be the steps to evaluate them?
Sales and Trading
What are the qualifications needed to be a good salesman?
How would you make a customer like you even if you don’t like them?
General
What is the Dow Jones today?
What is the Federal Fund rate today?
What is the 30-year T-bond rate today?
Give me a business idea.