Glossary

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Qualifying Share
A share of common stock owned in order to qualify as a director of the issuing company.

Qualitative Analysis (General)
A subjective analysis that evaluates important factors that cannot be objectively or precisely evaluated.

Qualitative Analysis (Securities & Credit Analysis)
An analysis concerned with questions of experience, character and general caliber of management; status of labor relations and employee morale. A qualitative analysis does not include the analysis of actual financial data about a company.

Quality of Earnings
A phrase that describes a company's earnings that are attributable to increased sales and cost controls. Quality of earnings are distinguishable from artificial profits created by inflationary values in inventories and other assets which are affected by periods of high and low inflation. Investors are often willing to pay more for a higher quality of earnings.

Quant
A person with mathematical and computer skills who provides numerical and analytical support services in the securities field.

Quantise
Refers to a practice of denominating an asset or liability in a currency other than the one in which it usually trades.

Quantitative Analysis
An analysis based on objectively measurable factors, such as cost of capital, value of assets, profitability, etc. Contrast with qualitative analysis, which is based on subjectively evaluated information. Although quantitative and qualitative factors are distinguishable from each other, a combination of both types of analyses allows for the soundest business and financial judgment.

Quanto Option
An option in one currency or interest rate that pays out in another currency or interest rate. Used when an investor favors a foreign index, but is bearish on the outlook for that country's currency.

Quarter Stock
Refers to stock with a par value of $25/share.

Quarterly (General)
Refers to every three-month period of a year.

Quarterly (Securities)
The basis on which earnings reports to shareholders are made and also the usual time frame of dividend payments.

Quarterly Earnings Change (%)
Historical earnings change between the earnings most recently reported and the quarter preceding.

Quarterly Net Profit Margin (%)
Net operating earnings after taxes for the latest quarter divided by revenues for the quarter.

Quick Assets
Refers to cash, marketable securities and accounts receivable.

Quickie
An order that must be filled as soon as it reaches the trading floor at the price specified, or be canceled immediately.

Quick Ratio
Indicator of a company's financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities.

Quid Pro Quo (General)
From Latin, meaning 'something for something,' such as when one party provides a service or good for which he or she gets another good or service in return.

Quid Pro Quo (Securities)
From Latin, meaning 'something for something'. In the securities industry this refers to an arrangement by a firm using institutional research that it will execute all trades based on that research instead of paying directly for the research. This practice is known as paying in soft dollars.

Quorum
Refers to the minimum number of people who must be resent at a meeting in order to make specific decisions go into effect. A quorum may be required by a committee, shareholder, board of directors, or for legislative and other meetings in order for any decisions made to have legal standing. A quorum requirement may be achieved by means of a proxy as well as by appearance in person.

Quotation
The price being offered or bid by a market maker or broker-dealer for a particular security.

Quotation (Investments)
Refers to the highest bid and lowest offer (asked) price currently available on a security or commodity. An investor who asks for a quotation or quote on ABC may be told "70 to 70-1/2" which means the best bid price is currently $70 per share and that the best offer a seller is willing to accept is $70-1/2 at that time. Quotations assume round-lot transactions.

Quoted Price
Refers to the price at which the last sale and purchase of a particular security or commodity took place.

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