Qualified Institutional Buyer (QIB)

(USA) Generally, entities that in the aggregate own and invest on a discretionary basis at least $100 million in securities of non-affiliated issuers. Offerings to QIBs under Rule 144A are exempt from registration under the Securities Act of 1933, but are considered as restricted securities subject to Rule 144A. See ‘Rule 144A’.

Qualified Opinion

An accountant’s opinion on financial statements in which some qualification is expressed, such as the company’s inability to continue as a going concern. See ‘Unqualified Opinion’.

Quick Ratio

A measure of a company’s liquidity, used to evaluate creditworthiness. Equals current assets divided by current liabilities. Also called ‘acid-test ratio.’

Quiet Period

(USA) The period starting at the time the underwriters and the issuer reach a preliminary understanding and continuing until 25 days after the effective date of the registration statement for IPOs and the effective date for subsequent offerings. During this period there are various restrictions imposed by the SEC on company publicity. See ‘Cooling-Off Period’, ‘Gun Jumping,’ and ‘Waiting Period’.

Quorum

Minimum number of people who must be present (physically or by proxy) at a meeting in order for a legally valid action to be taken.