Financial Definitions Starting with "Q"

The Q ratio is a measure of how overpriced or underpriced the whole stock market is. It is based on Tobin's Q, which measures a firm's assets in relation to its market value. The formula for T...

QQQQ was the ticker for the Nasdaq 100 Index Trust ETF (it is now QQQ). The Nasdaq 100 Index is composed of the 100 largest stocks (based on market capitalization) traded on the Nasdaq. This index is...

Quadrix is a system that calculates stock values. The Quadrix system is trademarked by the Horizon Publishing Company. The system uses more than 80 variables in seven categories (momentum, ...

Quadruple witching refers to the third Friday of every March, June, September and December. On these days, market index futures, market index options, stock options and stock futures expire, usually r...

A qualification ratio is actually two ratios that banks use to determine whether a borrower is eligible for a mortgage. The two ratios generally are: Total Borrower Debt/Monthly Income Borrower'...

A qualified acquisition cost refers to the cost of buying, building, or rebuilding a home. Investors can often withdraw qualified acquisition costs from their IRAs without paying early withdrawal pena...

Qualified adoption expenses (QAEs) are costs associated with adopting a child. They are generally tax-deductible and may even qualify for a tax credit.For example, let's assume that Jane would lik...

Qualified annuities are annuities purchased with pre-tax dollars. An annuity is a contract whereby an investor makes a lump-sum payment to an insurance company, bank or other financial inst...

A qualified appraisal is a document that formally describes and estimates the value of a piece of property.Assume that John wants to donate a painting to his favorite charity. He believes the painting...

A qualified appraiser is a person authorized to produce a qualified appraisal. A qualified appraisal is a document that formally describes the value of a piece of property, usually exceeding $5,0...

A qualified automatic contribution arrangement (QACA) is a way to automatically enroll employees in a defined contribution plan like a 401(k).  For example, assume that you get a new job with an...

A qualified charitable organization is a charity to which donations are tax-deductible.According to the IRS, only certain types of organizations can be qualified charitable organizations: Communi...

A qualified disclaimer is a formal refusal to accept interest in property bequeathed in a will or similar document. Section 2518 of the Internal Revenue Code permits the beneficiary of an estate ...

A qualified distribution refers to a tax and penalty-free withdrawal from a Roth IRA.A qualified distribution must meet two main requirements. First, it must occur at least five years after the Roth I...

A qualified dividend is a dividend eligible to incur capital gains tax.For example, let's assume that John owns 10,000 shares of Company XYZ stock, which pays $0.20 per year in dividends. In total...

A qualified domestic institutional investor (QDII) is an institution allowed to invest in foreign securities. China runs one of the most well known QDII programs. There, the China Securities Regu...

A qualified electric vehicle is powered by an electric motor that relies on rechargeable batteries or fuel cells.Specifically, and according to the IRS, a qualified electric vehicle must have a batter...

A qualified eligible participant (QEP) is a person who is allowed to trade in investment funds as defined in Rule 4.7 of the Commodity Exchange Act.In order to be a QEP, a person must own at least $2,...

Qualified exchange accommodation arrangements are a strategy to simplify and assist with real estate exchanges made under Section 1031. For example, let's assume that John wants to sell his...

Generally, a qualified higher education expense is tuition or a tuition-related expense paid to a post-secondary institution.For example, let's assume that John pays $48,000 in tuition and fees fo...

A qualified institutional buyer (QIB or QUIB) is a company that manages at least $100 million of securities on a discretionary basis or is a registered broker-dealer investing at least $10 million in ...

A qualified institutional placement (QIP) occurs when the Securities and Exchange Board of India (SEBI) allows an Indian company to issue securities in India without providing preliminary filings rega...

A qualified joint and survivor annuity (QJSA) gives a series of payments to a retirement plan participant’s spouse, child or dependent after the participant dies. QJSAs can be in defined benefit pl...

A qualified mortgage insurance premium is a payment to insure a homeowner’s mortgage payments. Let’s say John and Jane Doe buy a house. They obtain a mortgage to buy the home, but because...

A qualified opinion is a cautionary written notice from an auditor stating that a company has not complied with generally accepted accounting principles (GAAP). There are two main reasons an audi...

A qualified pre-retirement survivor annuity (QPSA) is a company-sponsored death benefit that provides the employee's surviving spouse with an annuity payment should the employee die before receivi...

Qualified production activities income (QPAI) is certain income related to manufacturing that qualifies to be taxed at a lower rate.For example, let's assume that Company XYZ generated $10,000,000...

A qualified professional asset manager (QPAM) is a registered investment advisor (RIA) that helps pension plans and similar entities make investments.The Employee Retirement Income Security Act of 197...

A qualified reservist is a member of the military reserves who is eligible to make an early withdrawal from an individual retirement account (IRA).For example, let's assume that John is a 28-year-...

A qualified retirement plan is a plan to which the IRS grants specific tax benefits.The myriad of exact requirements for qualified retirement plans are in the Internal Revenue Code section 401(a) and ...

Qualified savings bonds are series EE bonds issued after December 1989.  Series EE savings bonds are bonds guaranteed by the United States government. They pay interest (usually at relatively lo...

A qualified special representative agreement (QSR) is a National Securities Clearing Corporation (NSCC) agreement that allows one broker-dealer to send a trade to a clearinghouse on behalf of another ...

A qualified stock option is a type of company share option granted exclusively to employees.  It confers an income tax benefit when exercised. Qualified stock options are also referred to as "...

A qualified terminable interest property (QTIP) trust allows a grantor to provide for a spouse after death but retain control of how the trust's assets are distributed after the spouse dies. For exam...

Qualified widow (or widower) is a tax-filing status similar to filing single, married filing jointly, married filing separately, or head of household.For example, let's assume the John and Jane Do...

A qualifying disposition is the sale, transfer or exchange of stock that an investor acquires from an incentive stock option (ISO) or employee stock purchase plan (ESPP) and is taxed at the capital ga...

A qualifying domestic trust (QDOT) is a trust that allows non-citizens to obtain a marital deduction.For example, let's assume that John Doe is a U.S. citizen and his wife, Jane Doe, is not. Toget...

A qualifying investment is a contribution to a retirement plan made with pre-tax income.For example, let's assume that John participates in his company's 401(k) plan. He socks away $200 per mo...

Qualifying ratios are ratios banks use to determine whether a borrower is eligible for a mortgage. The two qualifying ratios banks generally use are:Total Borrower Debt / Monthly IncomeandBo...

A qualifying relative is a person a taxpayer can claim as a dependent. For example, let's assume that John and Jane Doe took in Jane's mother because she ran out of retirement money and can no longer...

A qualifying transaction occurs when a private company issues publicly traded stock in Canada.For example, let's assume Company XYZ is a Canadian company that is privately held. Company XYZ wants ...

A qualifying widow or widower is a person who can still file as married filing jointly for tax purposes. Let's say John and Jane Doe have been married for 40 years. John is diagnosed with termina...

Qualitative analysis is the use of non-quantifiable methods to evaluate investment or business opportunities and make decisions. This is different from quantitative analysis, which relies on a company...

Quality control is the act of ensuring that a company's goods and services are built and delivered to spec, on time and at the appropriate cost. For example, let's assume that Company XYZ makes widge...

Quality management is the act of ensuring that a company's goods and services are built and delivered to spec, on time and at the appropriate cost. For example, let's assume that Company XYZ ...

Quality of earnings describes the amount of profit from core operations rather than accounting methods, extraordinary situations or earnings management. For example, let's say that Company XYZ...

Quality of life describes the happiness, independence and freedom available to an individual. For example, if John Doe hits a dog with his car one night, he may have to consider euthanizing the dog i...

A quant fund is typically a mutual fund that picks investments based solely on mathematical analysis. For example, let's say John Doe runs the XYZ Fund. He uses the Quadrix system to screen and s...

Quantitative analysis is the use of math and statistical methods to evaluate investment or business opportunities and make decisions.In portfolio management, quantitative analysis is often used to mat...

Quantitative easing (sometimes abbreviated "QE") is a strategy used by a central bank -- like the Federal Reserve -- to add more money to that which is in circulation. The premise (which ...

Quantitative trading is an investment strategy based on picking investments solely on mathematical analysis. Let's say John Doe runs the XYZ Fund. He uses the Quadrix system to screen and select ...

The quantity theory of money argues that the size of the money supply influences the price of goods. The quantity theory of money (sometimes called QTM) says that prices rise when there is more money...

Quarter over quarter refers to the mathematical process of comparing one quarter of data to the previous quarter. In business, note that the start and end dates of quarters can vary, though they are g...

Quarter to date refers to the three-month period extending from the beginning of the quarter to the end of the quarter. In the finance world, quarter 1 usually spans January 1-March 31; quarter 2 usua...

Quarterly income preferred securities (QUIPS) are hybrid, preferred-stock-like securities issued by Goldman, Sachs & Co. QUIPS are shares of preferred stock issued by a special purpose foreign or...

A quarterly report is a set of financial statements issued by a company every three months. Public companies in the United States file this report via the Securities and Exchange Commission (SEC) Form...

The Quarterly Services Survey is an estimate of the operating revenue by customer class for communications firms, IT firms, hospitals and nursing services providers.   The Census Bureau admini...

A quartile is one of four equal parts. For example, if we were to look at all of the closing prices for Company XYZ stock for every day in the last year, the top 25% of those prices would r...

A questioned document investigation is an inspection of documents that may be forged or otherwise fraudulent. Let's say John Doe dies and leaves behind a will giving everything to Sally Jones. Sally ...

Quick assets are assets that can be converted to cash quickly. Typically, they include cash, accounts receivable, marketable securities, and sometimes (not usually) inventory. For example, ...

The quick ratio (also known as the acid-test ratio) offers insight into how well a company can meet its short-term obligations. As in chemistry, an acid test provides fast results, showing ho...

Quick response (QR) code is a type of two-dimensional barcode that can be read with specific QR barcode readers and most mobile phone cameras. The code is made of small black squares and rectangles th...

A quick-rinse bankruptcy moves through the courts especially quickly. Let's say Company XYZ is struggling to pay its vendors and is quickly running out of cash to pay its employees. It has ...

Quid pro quo is a Latin phrase that literally means "something for something." The phrase usually indicates an exchange of goods or services of roughly equivalent value. From a legal perspective, qui...

A quiet filing is an IPO filing that intentionally excludes certain information. When a company is getting ready to go public, it files an SEC Form S-1, which is also called a prospectus. The Securit...

The quiet period refers to the waiting period between a company filing a registration statement with the US Securities and Exchange Commission (SEC) and the time when the SEC declares the statement to...

Quiet title is the name of a legal action intended to ensure that the owner of a property is in fact the real owner and that the property has no other ownership claims on it. To do this is known as qu...

Quiet title action is the name of a legal action intended to ensure that the owner of a property is in fact the real owner and that the property has no other ownership claims on it. To do this is call...

A quintile is one of five equal parts. For example, if we were to look at all of the closing prices for Company XYZ stock for every day in the last year, the top 20% of those prices would r...

A quitclaim deed is a document that transfers interest in a property to another person. For example, let's say John Doe and Jane Doe are married and live in a house that they own together. John a...

A quorum is the minimum number of directors required to conduct a board meeting. Usually is a quorum is a majority. Let's assume Company XYZ has 10 board members. Its bylaws state that at least s...

Quota can refer to a measure that sets the limits, either minimum or maximum, on a particular activity.Quotas are usually set by government or by an organization of producers of a particular product.&...

Quotation is the long form of quote, which refers to stock quote. A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock ...

A quote is an estimate of price or a price at which one party is willing to buy or sell from the other. In the trading markets, a quote is the bid and ask price for a security.   For example, ...

Also called secondary currency or counter currency, a quote currency is the currency being purchased in a currency pair. Four main pairs of currencies are most commonly traded in ...

Quote stuffing occurs when traders place a lot of buy or sell orders on a security and then cancel them immediately afterward, thereby manipulating the market price of the security. Manipulating the p...

Quoted price refers to stock, bond or other security quotes. A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock from ...