Investability Quotient - IQ
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. |
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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. |
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