Q

Qualified Institutional Buyer (QIB)

A Qualified Institutional Buyer (QIB) is an institutional investor that is deemed financially sophisticated and is legally recognized to engage in transactions that are exempt from certain securities regulations. QIBs include entities like mutual funds, insurance companies, and pension funds.

For example, a pension fund managing over $100 million in assets qualifies as a QIB and can participate in private placements of securities.

Qualified Opinion

A Qualified Opinion is an auditor’s statement that suggests that the financial statements are fairly presented, except for specific areas where the auditor has reservations. It indicates that there are certain limitations or exceptions to the overall accuracy of the financial statements.

For example, an auditor might issue a qualified opinion if they believe that a company’s inventory valuation methods are not in compliance with accounting standards.

Qualitative Analysis

Qualitative Analysis involves evaluating non-numerical data, such as company management, industry conditions, and market trends, to assess the value or potential of an investment. It complements quantitative analysis, which focuses on numerical data.

For example, an investor might use qualitative analysis to assess a company’s brand strength and leadership team when making investment decisions.

Quantitative Analysis

Quantitative Analysis involves the use of mathematical and statistical models to analyze financial data and make investment decisions. It focuses on numerical data such as financial ratios, market trends, and historical performance.

For example, a financial analyst might use quantitative analysis to evaluate the risk and return of a portfolio by analyzing historical price movements and volatility.

Quarterly Earnings

Quarterly Earnings refer to a company’s financial performance over a three-month period. Public companies report their earnings quarterly, providing updates on revenue, profit, and other key financial metrics.

For example, a company might report its quarterly earnings in April, July, October, and January, corresponding to its fiscal quarters.

Quick Ratio

The Quick Ratio, also known as the acid-test ratio, is a measure of a company’s ability to meet its short-term obligations using its most liquid assets. It is calculated by dividing quick assets (cash, marketable securities, and receivables) by current liabilities.

For example, if a company has $100,000 in quick assets and $50,000 in current liabilities, its quick ratio is 2.0.

Quid Pro Quo

Quid Pro Quo is a Latin term meaning “something for something.” It refers to a reciprocal exchange of goods, services, or favors, where one thing is given in return for another.

For example, in a business deal, one company might agree to provide marketing support for another company in exchange for a percentage of the sales revenue generated.

Quiet Period

The Quiet Period is a mandated period of time following a company’s IPO during which it is restricted from making public statements or disclosures that could influence its stock price. It typically lasts 40 days after the IPO.

For example, a company that has just gone public must refrain from making new public announcements about its financial performance during the quiet period.

Quotation

A Quotation is the bid and ask price for a security or commodity as provided by a market maker or broker. It represents the current price at which buyers are willing to purchase and sellers are willing to sell.

For example, a stock might have a quotation of $50 bid and $51 ask, indicating the price range within which the stock can be bought or sold.

Quorum

A Quorum is the minimum number of members required to be present at a meeting to conduct official business and make decisions. It ensures that decisions are made with sufficient representation.

For example, a company’s bylaws might specify that at least half of the board members must be present to form a quorum and vote on corporate matters.