Financial Dictionary

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QQQQ

Formerly known as QQQ, is the NASDAQ 100 Index Tracking Stock. QQQQ offers investing in 100 most actively traded stock in the technology industry by owning just one security. QQQQ is also known as “quadruple-Qs” and “cubes.”

Quadruple Witching

A day on which contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expire.

Qualification Period

An initial period of insurance policy, when policyholder is not eligible to make requests on an amount due under terms of the policy. Qualification period is contrived in order to discourage fraud.

Qualified Institutional Investor

An investor permitted to trade private placement securities with other qualified institutional investors, and not register the securities with SEC. To be a Qualified Institutional Investor, one must have $100 millions in assets under management.

Qualified Opinion

An opinion on financial statement given by the professional auditor. Qualified Opinion is not a positive thing, even if it sounds alike. It is a statement that company, on which audit has been done, did not meet the GAAP principles, or that all necessary information is not available by the company.

Qualified Retirement Plan

A plan that offers tax benefits, because it meets the requirements of the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA). Benefits that a qualified retirement plan offers are the deduction of annual allowable contributions, postponed contributions and earnings on those contributions and transfer into a different type of Individual Retirement Account […]

Qualifying Share

A qualification rule for someone to become company’s director. He must hold a share of common stock that is no different from any other common stock a company has issued.

Qualitative Analysis

A method for investments valuation by analyzing the profile of the company, management, customer’s loyalty, brand and all other intangible assets. Qualitative analysis is inherent part of global analysis conducted on one company.

Quant

A person who executes quantitative analysis, but the securities analysts are often called “quants.”

Quant Fund

An investment fund that selects securities based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure “quant shop” the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use […]

Quantitative Analysis

A method for investment valuation, by measuring and comparing its numerical values, such as market share, earnings, revenues etc. Also, numerical values can be assigned to variables or intangible assets in order to improve analysis. Quantitative analysis is used in many cases, such as measurement of company’s future performance, security value, or option pricing.

Quantitative Easing

Central banks’ method of increasing money supply by printing new money and purchasing government securities. The process works as follows: 1. The central bank creates a pre-determined amount of money and uses it to buy government bonds in the market. 2. Because this reduces the supply of government bonds, their prices go up. This means […]

Quantity Theory Of Money

An economic theory which proposes a positive relationship between changes in the money supply and the long-term price of goods. It states that increasing the amount of money in the economy will eventually lead to an equal percentage rise in the prices of products and services. The calculation behind the quantity theory of money is […]

Quanto Option

Often called just “quanto,” it is an option whose underlying security is denominated in currency other than option’s currency. Quantos are used when investors are confident about the performance of the underlying asset, but are unsure of the performance of the currency that underlying asset is denominated. Quantos are set in a fixed exchange rate […]

Quarterly Earnings Report

A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net income, earnings per share, earnings from continuing operations and net sales. These reports follow the end of each quarter. Most companies file in January, April, July and October.

Quasi Contract

A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal contract requires two parties to consent to mutually agreeable terms. Under a quasi contract, neither party is originally intended to create an agreement. Instead, an arrangement is imposed by a judge to rectify […]

Quasi-Public Corporations

These are private corporations that were originally started as government agencies. These agencies are backed by the government in order to carry-out mandates specified in their legal charts. For example, Fannie Mae is a quasi-public corporation, which operates in private sector but under a government charter in order to increase affordability of homeownership. Stocks of […]

Quick Turn

Used mostly in day trading and refers to swift changing in the position of investors. Buying a security and quick sale of the same security is considered a quick turn.

Quiet Period

In terms of an IPO, the period where an issuer is subject to a SEC ban on promotional publicity. The quiet period usually lasts either 40 or 90 days from the IPO.

Quote

Refers to the highest bid and the lowest ask price for a given security.

Quote Driven Market

An electronic stock exchange system in which prices are determined from quotations made by market makers or dealers. Also known as a “price driven market”.