Q |
| Fifth
letter of a Nasdaq stock symbol specifying that it is in bankruptcy proceedings. |
Q ratio or Tobin's Q ratio |
| Market value of a firm's assets
divided by replacement value
of the firm's assets. Named after James Tobin of Yale University. |
Quadratic programming |
| Variant
of linear programming in which the objective function is quadratic rather than linear. In portfolio selection, we often minimize the variance of the portfolio (which is a quadratic function) subject to constraints on the mean return of the portfolio. |
Qualification period |
| A
period of time during the first few months or weeks of a new policy when an insurance company will not reimburse a policyholder for a claim in order to allow the insurance company time to find any fraudulent information in the application. |
Qualified endorsement |
| A
signature on the back of a negotiable instrument
transferring the amount to some other party but that includes wording that limits the endorser's liability. |
Qualified opinion |
| An
auditor's opinion expressing certain limitations of an audit. |
Qualified
plan or trust |
| A tax-deferred
plan allowing employer and employee contributions that build up savings, which are paid out at retirement or on termination of employment. Tax is paid only when amounts are drawn from the trust. |
Qualifying
annuity |
| An annuity
allowable as investment for a qualified plan or trust. |
Qualifying
share |
| Shares
of common stock that a person must hold in order to qualify as a director of the issuing corporation. |
Qualifying stock option |
| A
benefit granted by a corporation that allows employees to purchase shares at a discount price. |
Qualitative analysis |
| An
analysis of the qualities of a company that cannot be measured concretely, such as management quality or employee morale. |
Qualitative research |
| Traditional
analysis of firm-specific prospects for future earnings. It may be based on data collected by the analysts, there is no formal quantitative framework used to generate projections. |
Quality of earnings |
| Increased
earnings due to increased sales and cost controls, as compared to artificial profits created by inflation
of inventory or other asset
prices. |
Quality
option |
| Gives the seller choice of deliverables in Treasury bond and Treasury
note futures contracts.
Also called the swap option.
Related: Cheapest to deliver issue. |
Quality spread |
| Difference
between Treasury securities
and non-Treasury securities that are identical in all respects except for quality rating. For instance, the difference between yields on Treasuries
and those on single A-rated industrial bonds.
Also called credit spread. |
Quant |
| A
person with numerical and computer skills who carries out quantitative analyses of companies. |
Quantize |
| To
convert an asset or liability
into a currency other than the regular trading
currency. |
Quantitative
analysis |
| An analysis of the mathematically measurable figures of a company, such as the value of assets or projected sales. |
Quantitative research |
| Use
of advanced econometric and mathematical valuation models to identify the firms with the best possible prospectives. Antithesis of qualitative research. |
Quanto swap |
| See:
Differential swap |
Quantos |
| Currency options with a guaranteed exchange rate that enable buyers who like an asset, German bonds
for example, but not the asset's pricing currency, to arrange payment in a different currency for a fee. |
Quarter stock |
| Stock with a par
value of $25 per share. |
Quarterly |
| Occurring
every three months. |
Quasi-public
corporation |
| A corporation that is operated privately, but is supported by the government in its operations and that often traded publicly. |
Quick assets |
| Current assets minus inventories. |
Quick ratio |
| Indicator of a company's financial strength (or weakness). Calculated by taking current assets less inventories,
divided by current liabilities.
This ratio provides information regarding the firm's liquidity and ability to meet its obligations. Also called the Acid test ratio. |
Quid pro quo |
| An
arrangement allowing a firm to use research from another firm at no cost in exchange for executing all of its trades
with the firm that provides the research. |
Quiet period |
| Time
period an issuer is "in registration" with the SEC and may not promote its forthcoming issue. |
Quorum |
| The
minimum number of people who must be present or must provide a proxy to vote at a meeting in order to make a valid decision. |
Quotation |
| Highest
bid and lowest offer
(asked) price currently available on a security or a commodity. |
Quotation board |
| The
electronic board at a brokerage firm displaying prices other financial data. |
Quoted price |
| The
price at which the last trade
of a particular security or commodity took place. |