Financy Glossary
The online dictionary of financial terms



Q ratio (Tobin’s Q ratio)

The Q Ratio is the total price of the market divided by the replacement cost of all its companies.

This method of estimating fair value was developed by Nobel Laureate James Tobin of Yale University. The concept is fairly straight forward, but very laborious to calculate.


Qualified Stock Option (USA)

In the United States, a qualified stock option is an employee stock option (ESO) that isn’t subjected to tax at the grant date or when exercised.

For an ESO to be a qualified stock option, it must comply with the requirements of the International Revenue Service (IRS) for qualified stock options.



Quality Option

An option given to the seller of an interest rate futures contract which gives the seller a choice of several different deliverables. The seller can choose from Treasury bonds and notes provided that they satisfy the seller’s contractual obligation to the buyer.


Quant Fund

A fund that utilizes quantitative approaches and computer models to make investment decisions, rather rely on qualitative approaches (such as letting fund managers make investment decisions).



  1. A derivative in which the underlying is denominated in one currency, but the instrument itself is settled in another currency at some rate. Examples of common types of quanto are quanto futures contracts, quanto options and quanto swaps. Quanto products are appealing to investors that wish to have exposure to a foreign asset without having to take on any currency exchange rate risk.

  2. A weather-contingent energy or commodity derivative.



Quick Ratio

The Quick Ratio of a company is calculated by first adding together the company’s cash, all accounts receivable and all short-term investments, and then dividing that number with the company’s current liabilities.

The quick ratio provides an indication of how readily the company can meet its current liabilities.

If the quick ratio of a company is 1 or higher, the company is said to “pass the acid test”.



  1. The last price at which a security or commodity traded.When you look up the stock quote for a listed company, this is what you see – the most recent price for a completed trade.
  2. The bid quote for stock shows the price and quantity at which a potential buyer is willing to make a purchase, while the ask quote shows what a current participant is willing to sell the shares for.



Quoted Company

A share company listed at one or more stock exchanges.


See also: Unquoted public company


Quote Rule

The quote rule requires 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 the orders.

Quote stuffing is typically carried out by someone hoping to cause confusion in the market. Market confusion can create trading opportunities for algorithmic traders.