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.

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.

Quantitative analysis

An analysis of the mathematically measurable figures of a company, such as the value of assets or projected sales.

Quantitative research

Use of advanced econometric and mathematical valuation models to identify the firms with the best possible prospective.

Quantize

To convert an asset or liability into a currency other than the regular trading currency.

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.