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Money Market and Product

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Money Market  What is money market and tell me some feature about money market?   The money market is a market where short-term financial instruments are trade, like Treasury bills, Commercial paper, Certificates of deposit, Repurchase agreements and Interbank Landing. Some features of the money market are: 1.      High liquidity: These financial instruments can be bought or sold swiftly and readily on the money market with little effect on their price. 2.      Low risk: Since money market instruments are frequently issued by governments, companies with excellent credit ratings, or financial institutions, they are thought of as low-risk investments. 3.      Low return: Because money market instruments are less risky than other assets like stocks or bonds, their returns are lower. 4.      Regulated market: To guarantee that the money market runs effectively and transparently, the market is governed ...
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Corporate Actions

Corporate Actions Corporate decisions are those that an organization makes that may have an impact on its stockholders, securities, or corporate structure. Corporate actions can take many different forms, including dividend payments, rights issues, spin-offs, and bonus issues. 𝐁𝐨𝐧𝐮𝐬 𝐈𝐬𝐬𝐮𝐞𝐬 A bonus issue involves giving additional shares to existing shareholders without changing the overall value of their investment. A rights issue involves issuing new shares to existing shareholders, often at a discounted price, to provide the company with additional capital while allowing shareholders to maintain their ownership stake. Rights issues Existing owners receive new shares through rights offerings, frequently at a discount. This gives the corporation more funding while yet allowing shareholders to retain their proportionate ownership part in the business. 𝐒𝐩𝐢𝐧 - 𝐨𝐟𝐟𝐬 A spin-off transforms a division or subsidiary of an existing firm into a new, independent busi...
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FATF - Financials Action Task Force

  What is the FATF Grey List? The FATF's (Financial Action Task Force) grey list is a list of nations that have been found to have weaknesses in their anti-money laundering and counter-terrorist financing (AML/CFT) regimes but have pledged to fix them. Being on the grey list means a nation is in danger of being added to the blacklist if the appropriate measures are not taken to strengthen its AML/CFT framework. Why are Countries added to the FATF Grey List? When nations do not adhere to the FATF's AML/CFT standards, which are based on the organization's guidelines, they are included to the grey list maintained by the FATF. These criteria are used to evaluate a nation's capacity to stop, catch, and prosecute acts of money laundering and financing terrorism. How can Countries be removed from FATF Grey List? A nation must take significant actions to strengthen its AML/CFT system and show that it has made progress in addressing its shortcomings in order to be taken off the ...
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Investment Banking Interview question

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 Top 25 Interview question for Investment Banking.  1. What happens to free cash flow if net working capital increases? 2. How can a company raise its stock price? 3. If you were the Chief Financial Officer (CFO) of a Fortune 500 company, what would be your concerns? Explain from a high level what the long-term financial implications are for your company. 4. How would a $10 increase in depreciation expense affect the three financial statements (assuming a 40% tax rate)? 5. Walk me through the Income Statement . 6. What is Enterprise Value? 7. What is WACC and how do you calculate it? 8. What is EBITDA? 9. Would you be calculating enterprise value or equity value when using a multiple based on free cash flow or EBITDA? 10. Can a company have a negative book equity value? 11. What is typical of an LBO (leveraged buyout) transaction? 12. Why would a company issue equity rather than debt to fund its operations? 13....
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