1. Define Beta coefficient
The beta coefficient is a key parameter in the capital asset pricing model (CAPM).
Beta can be estimated for individual companies using regression analysis against a stock market index.
2. What is LBO
The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. Often, the assets of the company being acquired are used as collateral for the loans in addition to the assets of the acquiring company. The purpose of leveraged buyouts is to allow companies to make large acquisitions without having to commit a lot of capital.
3. Define Stagflation
Stagflation occurs when a country's inflation rate is high and unemployment rate is high. It is an economic condition in which inflation and economic stagnation are occurring simultaneously and have remained unchecked for a significant period of time
4. What is a Subprime Loan
A subprime loan is made to customers who typically have low credit scores and histories of payment defaults or bankruptcies. Subprime offers the opportunity for borrowers with less than ideal credit standing to gain access to funds. Borrowers use this credit to purchase homes, or finance other forms of spending such as purchasing a car, paying for living expenses, housing loan, or even paying down a high interest credit card.
5. Define EVA
Enterprise value (EV), Total enterprise value (TEV), or Firm value (FV) is an economic measure reflecting the market value of the whole business. It is a sum of claims of all the security-holders: debtholders, preferred shareholders, minority shareholders, common equity holders, and others. Enterprise value is one of the fundamental metrics used in business valuation, financial modeling, accounting, portfolio analysis, etc
6. What do you understand by class action suit
A lawsuit brought by one party on behalf of a group of individuals all having the same grievance.
7. Compare BSE Vs NSE
| BSE | NSE |
| Bombay Stock Exchange | National Stock exchange |
| SENSEX - Index | Index-NIFFTY |
| 30 companies | 50 companies |
| Trading volume - 17-18k | Trading range - 5-6 K
Derivative volume is high |
| Financial year -May to April | Financial year - January to December |
| Less credit worth-many scams | More reliable |
8. What do you understand by open interest
Open interest means all open positions of an underlining asset in a derivative.
9. What is reverse Mortgage?
A reverse mortgage (or lifetime mortgage) is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).
10. What’s the difference between RTGS and NEFT
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