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Traditional analysis of firm specific prospects for future earnings. While it is based on data collected by the
analyst, there is no formal quantitative framework used to generate projections
Quality option
Also called the swap option, the seller has choice of deliverables in Treasury Bond and Treasury note
futures contract. Related: cheapest to deliver issue
Quality spread
Also called credit spread, the spread 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.
Quantitative research
Use of advanced econometric and mathematical valuation models to identify the firms with the best possible
prospectives. Antithesis of qualitative research
Quantos
Currency options with a guaranteed exchange rate that enable buyers who like the asset, German bonds for
example, but not the assets pricing currency, to arrange to be paid in a different currency for a fee.
Quanto swap
See: differential swap.
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 firms liquidity and
ability to meet its obligations. Also called the Acid Test ratio.
Quotation
Used in the context of general equities. Highest bid and lowest offer (asked) price currently available on a
security or a commodity. Insider market.
List of all words beginning with R:
R
Fifth letter of a NASDAQ stock symbol specifying that the stock has rights.
Radar alert
Often used in risk arbitrage. Close monitoring of trading patterns in a company's stock by senior managers
to uncover unusual buying activity that might signal a takeover attempt. See: shark watcher.
Raider
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