:: Home Page            
 Advertise your Business Here     
Browse  |   Placement Papers  |   Company  |   Code Snippets  |   Certifications  |   Visa Questions
Post Question  |   Post Answer  |   My Panel  |   Search  |   Articles  |   Topics  |   ERRORS new
   Refer this Site  Refer This Site to Your Friends  Site Map  Bookmark this Site  Set it as your HomePage  Contact Us     Login  |  Sign Up                      
Categories >> Business Management >> Finance


 Business Administration interview questions  Business Administration Interview Questions (413)
 Marketing Sales interview questions  Marketing Sales Interview Questions (882)
 Finance interview questions  Finance Interview Questions (1052)
 Human Resources interview questions  Human Resources Interview Questions (703)
 Personnel Management interview questions  Personnel Management Interview Questions (11)
 Hotel Management interview questions  Hotel Management Interview Questions (18)
 Industrial Management interview questions  Industrial Management Interview Questions (58)
 Infrastructure Management interview questions  Infrastructure Management Interview Questions (12)
 IT Management interview questions  IT Management Interview Questions (87)
 Non Technical interview questions  Non Technical Interview Questions (68)
 Business Management AllOther interview questions  Business Management AllOther Interview Questions (367)
what is hedging? what is funding? what is deriveatives 
market in a lay man language?
 Question Submitted By :: Finance
I also faced this Question!!     Answer Posted By  
# 1
Making an investment to reduce the risk of adverse price
movements in an asset. Normally, a hedge consists of taking
an offsetting position in a related security, such as a
futures contract

Funding Agreement:
Funding agreements are marketed to mutual fund companies
and municipal reinvestments. These products are generally
used for their security and flexibility as they can be
altered to meet the specific cash-flow needs of the
contract holder.

In finance, a security whose price is dependent upon or
derived from one or more underlying assets. The derivative
itself is merely a contract between two or more parties.
Its value is determined by fluctuations in the underlying
asset. The most common underlying assets include stocks,
bonds, commodities, currencies, interest rates and market
indexes. Most derivatives are characterized by high
Derivatives are generally used to hedge risk, but can also
be used for speculative purposes. For example, a European
investor purchasing shares of an American company off of an
American exchange (using American dollars to do so) would
be exposed to exchange-rate risk while holding that stock.
To hedge this risk, the investor could purchase currency
futures to lock in a specified exchange rate for the future
stock sale and currency conversion back into euros.
Is This Answer Correct ?    10 Yes 1 No

Other Finance Interview Questions
  Question Asked @ Answers
What is Capital Budgeting?   5
Briefly describe your ideal job? Why did you choose this career? What goals do you have in your career? How do you plan to achieve these goals? Can you work well under deadlines or pressure? Tell us about a time when you failed to meet a deadline. What were the repercussions? Why do you want to work here? Why should we hire you over the others waiting to be interviewed? What three Specific Job Positions do you target from the Company? Maybank 15
Where Closing stock will reflect in balance sheet? ACS 19
how to calculate beta- in portfolio   1
what is the product of money market State-Bank-Of-India-SBI 3
what do u mean by portfolio management?? HDFC 17
What is Financial Ratio?   4
Financial Management What will your outlook towards maintenance of liquid assets to ensure that the firm has adequate cash in hand to meet its obligations at all times? NIBM 1
what is the function of bangalore stock exchange?   2
Hi, Can any tell me the Easy writing Topics For an MNC Companies. Genpact 3
What was the Married Woman's Property Act   1
now a days which type of fund is best in share market ? India-Infoline 2
For more Finance Interview Questions Click Here 

Copyright Policy  |  Terms of Service  |  Articles  |  Site Map  |  RSS Site Map  |  Contact Us
Copyright 2013  All Rights Reserved.   ::