Investability Quotient - IQ

AAA

DEFINITION of 'Investability Quotient - IQ'

A term used by Standard and Poor's to describe how good a company's medium to long-term return potential is. While medium to long-term return potential is the major contributor to IQ, other factors are also considered. The scale ranges from a minimum of 0 to a maximum of 250.

INVESTOPEDIA EXPLAINS 'Investability Quotient - IQ'

Other factors taken into consideration include: credit rating, liquidity, relative strength, and volatility measures.

IQ is an innovative way to incorporate numerous factors and derive a single number. This measure also allows for cross-industry comparisons to be made more easily. However, be careful not to rely too heavily on it.

RELATED TERMS
  1. Index

    A statistical measure of change in an economy or a securities ...
  2. Investment

    An asset or item that is purchased with the hope that it will ...
  3. Standard & Poor's - S&P

    The world's leading index provider and the foremost source of ...
  4. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  5. Merchandising

    Merchandising is any act of promoting goods or services for retail ...
  6. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...
Related Articles
  1. What Is A Corporate Credit Rating?
    Investing Basics

    What Is A Corporate Credit Rating?

  2. S&P 500 ETFs: Market Weight Vs. Equal ...
    Mutual Funds & ETFs

    S&P 500 ETFs: Market Weight Vs. Equal ...

  3. How To Analyze A Company's Financial ...
    Markets

    How To Analyze A Company's Financial ...

  4. Taking The Bite Out Of A Bear Market
    Insurance

    Taking The Bite Out Of A Bear Market

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center