Stock Broker Interview Questions

1. How many methods of stock repurchase exists?

“There are three principal methods of repurchase: a fixed-price tender offer, a Dutch-auction tender offer and open-market repurchase.”

2. Why would an investor buy preferred stock?

3. Which position on the trading floor is the most important?

4. What is the difference between bond market and stock market?

“The difference between these two markets is, the bond market is where investors go to trade debt securities, prominently bonds. The stock market is a place where investors go to trade equity securities like common stocks and derivatives.”

5. How many types of stocks are prevailing in the stock exchange market?

“Common stock • Concentrated stock • Golden share • Growth stock • Issued shares • Preferred stock • Restricted stock • Shares authorized •Shares outstanding • Tracking stock • Treasury stock.”

6. Can you trade a stock market index?

7. Tell us about some types of debentures?

“The debentures are classified on the basis of the terms and conditions of their issue by the company .unordinary, mortgage, redeemable, irredeemable, registered, bearer and convertible debentures.”

8. What is the difference between debentures and shares?

“Share is a part of owned capital. Debentures are an acknowledgement of debt.”

9. Who is a Stock Trader or Stock Investor?

“A stock broker is a regulated professional broker who buys and sells shares and other securities through market makers. A broker may be employed by a brokerage firm.”

10. Who is a Floor Trader?

“A floor trader is a member of a stock exchange who trades on the floor of that exchange for his or her own account. The floor trader must abide by trading rules similar to those of the exchange specialists who trade on behalf of others.”

11. Who is a Floor Broker?

“A floor broker is an independent member of an exchange who can act as a broker for other members who become overloaded with orders, as an agent on the floor of the exchange.”

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