Definitions Starting with "Q"

Q Ratio

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. Read more

QQQQ

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. Read more

Quadrix

Quadrix is a system that calculates stock values. The Quadrix system is trademarked by the Horizon Publishing Company. Read more

Quadruple Witching

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 resulting in increased volatility. Read more

Qualification Ratio

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's Total Monthly Debt Payments/Monthly Income For example, let's assume that Borrower X has $4,000 of monthly income and $30,000 of student loans and credit card debt, on which he pays $600. Read more

Qualified Acquisition Cost

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 penalties. Read more

Qualified Adoption Expenses (QAE)

Qualified adoption expenses (QAEs) are costs associated with adopting a child. They are generally tax-deductible and may even qualify for a tax credit. Read more

Qualified Annuity

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 institution that, in return, agrees to give the investor either a higher lump-sum payment in the future or a series of guaranteed payments. Read more

Qualified Appraisal

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. Read more

Qualified Appraiser

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 $5,000. Read more

Qualified Automatic Contribution Arrangement (QACA)

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 employer that offers a 401(k) plan. Read more

Qualified Charitable Organization

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: Community chests, corporations, trusts, funds, or foundations devoted to religious, charitable, educational, scientific, or literary causes or to the prevention of cruelty to children or animals. Read more

Qualified Disclaimer

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 or trust to make a qualified disclaimer so that for tax purposes it is as though the beneficiary had never received any interest in the property. Read more

Qualified Distribution

A qualified distribution refers to a tax and penalty-free withdrawal from a Roth IRA. A qualified distribution must meet two main requirements. Read more

Qualified Dividend

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. Read more

Qualified Domestic Institutional Investor (QDII)

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. Read more

Qualified Electric Vehicle

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 battery capacity of at least 2. Read more

Qualified Eligible Participant (QEP)

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. Read more

Qualified Exchange Accommodation Arrangements

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 commercial property for $600,000. Read more

Qualified Higher Education Expense

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 for a year at State University. Read more

Qualified Institutional Buyer (QIB)

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 non-affiliate securities. A QIB can be an insurance company, a bank, a 401(k) plan, an employee benefit plan, a trust fund, a business development company (BDC), a charity, or even an entity owned by qualified investors. Read more

Qualified Institutional Placement (QIP)

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 regarding the issue. QIPs are similar to private placements in the United States. Read more

Qualified Joint and Survivor Annuity (QJSA)

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 plans, other pension plans and even 401(k) plans. Read more

Qualified Mortgage Insurance Premium

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. Read more

Qualified Opinion

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 auditor may write a qualified opinion on a company's audit report:1. Read more

Qualified Pre-Retirement Survivor Annuity (QPSA)

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 receiving retirement benefits. For example, let's assume that John works at Company XYZ, which has a pension plan. Read more

Qualified Production Activities Income (QPAI)

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 in widget sales last year. Read more

Qualified Professional Asset Manager (QPAM)

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 1974 (ERISA) sets the requirements for becoming a QPAM. Read more

Qualified Reservist

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-old Air Force reservist. Read more

Qualified Retirement Plan

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 the Employee Retirement Income Security Act of 1974 (ERISA). Read more

Qualified Savings Bond

Qualified savings bonds are series EE bonds issued after December 1989.   Series EE savings bonds are bonds guaranteed by the United States government. Read more

Qualified Special Representative Agreement (QSR)

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 broker-dealer. For example, let's assume that Brokerage XYZ handles trades for high net-worth clients. Read more

Qualified Stock Option (QSO)

A qualified stock option is a type of company share option granted exclusively to employees.  It confers an income tax benefit when exercised. Read more

Qualified Terminable Interest Property (QTIP) Trust

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 example, let's say John establishes a QTIP trust with $4,000,000 in it. Read more

Qualified Widow

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 Doe have been married for 15 years and they have 2 minor children. Read more

Qualifying Disposition

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 gains rate. For example, let's assume that John Doe works as a financial analyst in Company XYZ. Read more

Qualifying Domestic Trust (QDOT)

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. Read more

Qualifying Investment

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. Read more

Qualifying Ratios

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 IncomeandBorrower's Total Monthly Debt Payments / Monthly IncomeFor example, let's assume that Borrower X has $4,000 of monthly income and $30,000 of student loans and credit card debt, on which he pays $600. Read more

Qualifying Relative

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 support herself. Read more

Qualifying Transaction

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. Read more

Qualifying Widow or Widower

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. Read more

Qualitative Analysis

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's income statement, balance sheet and other quantifiable metrics. Read more

Quality Control

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 widgets. Read more

Quality Management

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 makes widgets. Read more

Quality of Earnings

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's sales increase by 200%, its general and administrative expenses decrease by 10% and its net income increases by 140%. Read more

Quality of Life

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 if the veterinarian determines that the dog's quality of life, should it survive, would be very low. Read more

Quant Fund

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. Read more

Quantitative Analysis

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 mathematically determine when to buy or sell securities. Read more

Quantitative Easing (QE)

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 is largely theoretical and untested) is that if money supply is increased faster than the growth rate of Gross Domestic Product (GDP), the economy will grow. Read more

Quantitative Trading

Quantitative trading is an investment strategy based on picking investments solely on mathematical analysis. Let's say John Doe runs the XYZ Fund. Read more

Quantity Theory of Money

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 in an economy and they fall when there is less money in an economy. Read more

Quarter Over Quarter

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 generally three months, or 90 days, long. Read more

Quarter to Date (QTD)

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 usually spans April 1-June 30; quarter 3 usually spans July 1-September 30; and quarter 4 usually spans October 1-December 31. Read more

Quarterly Income Preferred Securities (QUIPS)

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 domestic LLC. Read more

Quarterly Report

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 10-Q. Read more

Quarterly Services Survey

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 administers the Quarterly Services Survey every quarter for companies in NAICS sectors 51, 54 and 56, and subsectors 622 and 623. Read more

Quartile

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 represent the upper quartile of the data. Read more

Questioned Document Investigation

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. Read more

Quick Assets

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

Quick Ratio

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. Read more

Quick Response (QR) Code

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 that are arranged in a square pattern on a white background that codes for text, URL or other information. Read more

Quick-Rinse Bankruptcy

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. Read more

Quid Pro Quo

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. Read more

Quiet Filing

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. Read more

Quiet Period

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 be effective. This is also referred to as the "waiting period. Read more

Quiet Title

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 quieting the title. Read more

Quiet Title Action

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 called quieting the title. Read more

Quintiles

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 represent the upper quintile of the data. Read more

Quitclaim Deed

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. Read more

Quorum

A quorum is the minimum number of directors required to conduct a board meeting. Usually is a quorum is a majority. Read more

Quota

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. Read more

Quotation

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 from the other. Read more

Quote

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. Read more

Quote Currency

Also called secondary currency or counter currency, a quote currency is the currency in a currency pair. Four of the major pairs of currencies are most commonly traded in the foreign exchange markets. Read more

Quote Stuffing

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 price of shares in order to benefit from the distortions in price is illegal. Read more

Quoted Price

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 the other. Read more