Hypertextual Finance Glossary
Copyright © 2020. All Worldwide Rights Reserved. Do not reproduce without explicit permission.
Keep up to date on the latest finance lingo with the new iPad/iPhone app
Download from iTunes
Order the book with the 2002 Pulitzer Prize winner for financial writing, Gretchen Morgenson of the New York Times
Order via Amazon
Order via Barnes and Noble
- Fifth letter of a Nasdaq stock symbol specifying that it is in bankruptcy proceedings.
- The two-character ISO 3166 country code for QATAR.
- The ISO 4217 currency code for the Qatar Rial.
- The three-character ISO 3166 country code for QATAR.
- QE1 is a nickname developed to refer to the first round of quantitative easing the Fed launched to promote stronger growth in America post financial crisis of 2008. On November 25, 2008 the Fed announced that it will purchase Government Sponsored Enterprises (GSE) debt of $100 billion and Mortgage-Backed Securities (MBS) of $500 billion. And On March 18, 2009, the size of these purchases were increased to GSE of $200 billion and MBS of $1.25 trillion, respectively. Purchase of $300 billion of longer-term Treasury securities was also announced on March 18, 2009.
- The second program of quantitative easing was first mentioned in a speech given by Federal Reserve Chairman Bernanke in Jackson Hole in August 2010. The Fed officially announced the program on November 3, 2010. The Fed stated that it will purchase $600 billion of longer-term Treasury securities by the end of 2nd quarter of 2011, a pace of about $75 billion per month in order to promote a stronger pace of economic recovery in the United States. The Fed would also use the income from its portfolio of securities for additional purchases bring the total purchases close to $800 billion. The purchases are focused in the 5-10 year maturities.
- The ticker for the PowerShares QQQ Trust, Series 1, an ETF traded on the Nasdaq Index. Formerly the Nasdaq-100 Trust, Series 1, this trust holds all the component securities that make up the Nasdaq and issues securities called QQQ Index Tracking Stock that are designed to track the approximate performance of the Nasdaq Index.
- 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.
- A unit of quantity equal to 10123 (1 followed by 123 zeros).
- A unit of quantity equal to 1015 (1 followed by 15 zeros).
- 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 Domestic Relations Order (QDRO)
- A judgment, decree, or order that gives a pension plan participant access to retirement assets that must be used to pay an ex-spouse or dependent children.
- 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.
- Qualified retirement plan
- A retirement plan established by employers for their employees that meets the requirements of Internal Revenue Code Section 401(a) or 403(a) and is eligible for special tax considerations. The plan may provide for employer contributions, as in a pension or profit-sharing plan, as well as employee contributions. Employers can deduct plan contributions made on behalf of eligible employees on the business's tax return as business expenses. Plan earnings are not taxed to the employee until withdrawn.
- Qualified Terminable Interest Property Trust (Q-TIP)
- A trust that allows a surviving spouse to receive income generated from the trust, while the actual distribution of the trust's assets is made to other beneficiaries such as the grantor's children.
- Qualified total distribution
- A payment representing an employee's interest in a qualified retirement plan. The payment must be prompted by retirement (or other separation from service), death, disability, or attainment of age 59-1/2. Payment can be in installments as long as the complete distribution is made within a single tax year.
- 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.
- Quant fund
- A fund that uses quantitative approaches and computer models to make investment decisions as opposed to qualitative approaches like opinion of fund managers.
- Quantitative analysis
- A mathematical analysis of the measurable figures of a company, such as the value of assets or projected sales. This type of analysis does not include a subjective assessment of the quality of management.
- Quantitative easing
- A monetary policy in which the central bank engages in open market transactions aimed at increasing money supply in the economy. Easing could also involve direct money creation (printing).
- Quantity risk
- Occurs when the quantity of an asset to be hedged is uncertain.
- 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.
- A person with numerical and computer skills who carries out quantitative analyses of companies.
- To convert an asset or liability into a currency other than the regular trading currency.
- 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
- 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.
- Occurring every three months.
- Quarterly financing
- February 15, May 15, August 15 and November 15, or next working day offerings of several "coupon" security issues. Quarterly issues currently consist of a 3-year note, a 10-year note, and a 30-year bond. The Treasury sometimes offers additional amounts of outstanding long-term notes or bonds, rather than selling new security issues. See: Reopening.
- Quasi-public corporation
- A corporation that is operated privately, but is supported by the government in its operations and that often traded publicly.
- A unit of quantity equal to 1045 (1 followed by 45 zeros).
- A unit of quantity equal to 10285 (1 followed by 285 zeros).
- A unit of quantity equal to 10255 (1 followed by 255 zeros).
- A unit of quantity equal to 10135 (1 followed by 135 zeros).
- A unit of quantity equal to 10165 (1 followed by 165 zeros).
- A unit of quantity equal to 10225 (1 followed by 225 zeros).
- A unit of quantity equal to 10195 (1 followed by 195 zeros).
- A unit of quantity equal to 10105 (1 followed by 105 zeros).
- A unit of quantity equal to 1075 (1 followed by 75 zeros).
- A landing place or pier, usually of solid construction, where vessels berth to load or unload cargo.
- 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.
- A unit of quantity equal to 1048 (1 followed by 48 zeros).
- A unit of quantity equal to 10288 (1 followed by 288 zeros).
- A unit of quantity equal to 10258 (1 followed by 258 zeros).
- A unit of quantity equal to 10138 (1 followed by 138 zeros).
- A unit of quantity equal to 10153 (1 followed by 153 zeros).
- A unit of quantity equal to 10168 (1 followed by 168 zeros).
- A unit of quantity equal to 10228 (1 followed by 228 zeros).
- A unit of quantity equal to 10198 (1 followed by 198 zeros).
- A unit of quantity equal to 1018 (1 followed by 18 zeros).
- A unit of quantity equal to 10108 (1 followed by 108 zeros).
- A unit of quantity equal to 1078 (1 followed by 78 zeros).
- 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.
- See Import Quota
- 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.
- Quote rule
- Rule requiring market makers to publish quotations for any listed security when a quotation represents more than 1% of the aggregate trading volume for that security.
- Quote Stuffing
- A practice of placing an unusual number of buy or sell orders on a particular security and then immediately canceling them. This can create confusion in the market and trading opportunities for algorithmic traders.
- Quoted price
- The price at which the last trade of a particular security or commodity took place.
View the next letter.
Copyright © 2020, Campbell R. Harvey. All Worldwide Rights Reserved. Do not reproduce without explicit permission.
[Version 26 November 2019.]
Keep up to date on the latest finance lingo with my new iPad/iPhone app
Download from iTunes
Order my book with the 2002 Pulitzer Prize winner for financial writing, Gretchen Morgenson of the New York Times
Order via Amazon
Order via Barnes and Noble