Bloomberg Financial Glossary
Bloomberg Financial Glossary
letter  Campbell R. Harvey
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.

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