Word of the DayFutures Terms that begin "Q"
Qualitative Analysis
Analysis that uses subjective judgment to evaluate securities based on non-financial information such as management expertise, cyclicality of industry, strength of research and development, labor relations and depth of operational infrastructure.
Qualitative analysis evaluates important factors that cannot be precisely measured rather than the actual financial data about a company.
Quantitative Analysis
Quantitative analysis uses statistical techniques to develop investment models using key financial ratios and economic indicators. The use of objective data facilitates the comparison of a large universe of securities to identify a select range of potential investment possibilities. Quantitative analysis deals with measurable factors in contrast from qualitative considerations such as the character of management.