Qualified Legal Opinion
A contingent confirmation regarding the legality of a new municipal bond issue. If there is a lawsuit to block a new municipal bond issue, the bond counsel will examine the situation. If the counsel concludes that there may be a premise for the suit, a qualified opinion is issued that expresses their doubt as to the result of the lawsuit. A non-qualified opinion has no uncertainty concerning the new issue.

See: Bond Counsel; Debt Instrument; Legal Opinion; Municipal Bond

Qualified Pension Plan or Trust
A retirement plan (or annuity) set up by an employer for an employee into which the employee and/or the employer may make tax deductible contributions. The plan's investment earnings are tax deferred. The employees pay taxes only when they draw money from the plan. If the money is withdrawn before the legal age, penalties may also be incurred. IRA's, and most corporate pension plans are deemed to be qualified.

See: Annuity; 401(K) Plan; Individual Retirement Account; Pension Fund; Tax Deferred

Qualifying Share
In order to qualify as a director of a corporation, the potential director must own a share of the corporation's common stock.

See: Common Stock; Corporation; Director

Qualified Terminable Interest Property Trust (Q-TIP Trust)
A type of trust that is frequently used to provide for the welfare of a spouse. It keeps the assets out of the estate of another (such as a future marriage partner) if the grantor dies first. It allows assets to be transferred between spouses. The grantor of a Q-Tip trust directs the income generated from the assets to their spouse for life, but has the power to distribute the assets upon the death of the spouse. The trust qualifies the grantor for unlimited marital deductions if the spouse dies first.

Qualitative Analysis
Securities analysis that looks at a corporation's management experience, employee morale and the status of labor relations instead of the corporation's financial data.

See: Fundamental Analysis; Quantitative Analysis; Technical Analysis

Quantitative Analysis
Securities analysis that looks at a corporation's financial data and projections. Such items include its assets, liabilities, sales pattern and profitability.

See: Fundamental Analysis; Qualitative Analysis; Technical Analysis

Quarter Stock
Stock with a par value of $25 per share.

See: Par

Quick Asset
Current assets that can be converted to cash quickly and easily. Quick assets are current assets less inventory.

See: Acid Test Ratio; Current Assets; Liquidity; Quick Asset Ratio

Quick Asset Ratio
Also called acid test ratio or quick ratio, it is a corporation's current assets minus inventories divided by current liabilities. By excluding inventory from the formula, the ratio focuses on a corporation's liquid assets, and helps determine if the corporation can meet its current liabilities with its convertible assets if sales ceased. A corporation is considered sound when quick assets exceed current liabilities.

See: Acid Test Ratio; Current Assets; Current Liabilities; Liquidity; Quick Asset

Quid Pro Quo
In the securities industry, it is an agreement in which a company, using institutional research, will execute all trades based on that research with the firm providing it and thus, makes payment in soft dollars. This is done instead of directly paying for the research.

See: Fundamental Analysis; Technical Analysis

Quiet Period
The period during which an issuer is prohibited from engaging in promotional publicity for the issue. This interval begins during the pre-filing period and lasts for either 40 or 90 days after the effective date.

Quintile Rank
A group of funds' performance values are sorted in ascending or descending order and separated into one of five equivalent ranges of those values, synonymous with one-fifth of the population. Funds falling within one of the five ranges are assigned a quintile. The top (first) quintile is designated the best-performing while the bottom (fifth) quintile is the worst performing.

Quotation Board
Electronic board that displays a stock's current price quotations and current trading volume.

See: Inside Quote; Volume

Quoted Price
Price at which the last sale or purchase was transacted for a specific security or commodity.

See: Commodities; Inside Quote; Securities