From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.
QSBS stands for Qualified Small Business Stock, a provision under US tax law that allows investors in eligible small businesses to exclude a significant portion of capital gains from federal taxes when selling shares held for more than five years. It is designed to incentivise investment in early-stage companies. The exclusion can apply to gains up to $10 million or ten times the investor's cost basis, whichever is greater.
Learn moreQualified dividends are dividend payments from stocks that meet specific IRS criteria, making them eligible to be taxed at the lower long-term capital gains rate rather than the higher ordinary income tax rate. To qualify, the dividends must be paid by a US corporation or a qualifying foreign corporation, and the investor must have held the shares for a required minimum period. Qualified dividends offer a tax advantage compared to ordinary dividends.
Learn moreThe quick ratio is a liquidity metric that measures a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory. It is calculated by dividing the sum of cash, short-term investments, and receivables by current liabilities. A quick ratio above 1.0 generally indicates the company can cover its short-term liabilities without relying on selling inventory.
Learn moreExplore all glossary terms currently grouped under the letter "Q".
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