suneetk/investopedia_terms huggingface dataset:
# Quadrix

![Quadrix](https://www.investopedia.com/thmb/EUjrJiam00nv_ubhyz1x4mOESrM=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/quadrix.asp-final-f5e56fb966ec43e79e5104fe4b40937e.png)

*— Investopedia / Ryan Oakley*

## What Is Quadrix?

Quadrix is a stock rating system that uses over 90 variables in seven major categories to determine the value of a stock. The Quadrix system is produced and maintained by Horizon Publishing Company. The seven major categories are momentum, quality, value, financial strength, earnings estimates, performance, and reversion. The overall score for a particular stock is determined by a weighted average of all 90 variables.

The Quadrix system was developed by Horizon Investment Services’ Chief Investment Officer, [Rich Moroney](https://www.horizoninvestment.com/team.asp#Moroney) and has been publishing scores for stocks since the year 2000.

### Key Takeaways

*   Quadrix is a proprietary stock screening system.
*   The screener looks at publicly traded stocks in the U.S. including some ADRs of foreign companies listed on U.S. exchanges.
*   Quadrix is not a risk-based portfolio builder based on modern portfolio theory of the kind used by many roboadvisors.

## How Quadrix Works

Quadrix is a stock evaluation tool that rates stocks based on variable scores that fall into one of seven categories. The seven categories of variables used in Quadrix are momentum, quality, value, financial strength, forecasted earnings, performance, and reversion. The Quadrix system can also be used as a tool for tracking industry group performance.

Quadrix is a first stock screen for building portfolios. The system looks at the given set of 90 variables in a universe of over 4,000 stocks. It is intended to narrow the universe of acceptable stocks under consideration by an investor. It is not a risk-based portfolio builder like some robo-advisors.

## Examples and Uses of Quadrix

Quadrix is used in-house by Horizon Publishing to screen stocks for clients, and it is available for subscribers to Horizon's newsletter products. As mentioned above, it is not a risk-based portfolio builder, and it does not rely on [Modern Portfolio Theory](https://www.investopedia.com/terms/m/modernportfoliotheory.asp) (MPT) to weight stocks or evaluate risk versus return for the investor.

> **Article Sources**
>
> 1.  Horizon Investment Services. "[Quadrix Stock-Rating System: The Cornerstone of Our Research](https://www.horizoninvestment.com/PDFS/BOTH/Quadrix_Stock-rating_System-o.pdf)."
# Questioned Document Investigation: What it is, How it Works

## What Is Questioned Document Investigation?

A questioned document investigation is an in-depth look into a document that is being questioned in the case of [fraud](https://www.investopedia.com/terms/f/fraud.asp), forgery, etc. The investigation is usually initiated in the event that large sums of money, heirlooms, or other assets are being called into question by a third party. A questioned document investigation may also be called upon to discover altered documents, fabricated checks, anonymous letters, disputed wills, and many other disputed documents. A forensic analysis of the questioned document will typically involve a comprehensive analysis of the paper, ink, indentations, and tools used to produce the document.

## Understanding Questioned Document Investigation

A questioned document investigation is used to ascertain the authenticity (or lack thereof) of a document or other item when it comes into question. The discipline of forensic document examination is sometimes referred to as "questioned documents analysis," and it is frequently associated with [white-collar crimes](https://www.investopedia.com/terms/w/white-collar-crime.asp) such as accounting irregularities, check fraud, or securities fraud. It can also be used to analyze documents related to other types of crimes or misdeeds such as medical malpractice or even analyzing suicide notes for authenticity.

Examiners of questioned documents use an array of heuristic and technological tools and techniques to judge the authenticity of documents or to reveal if something has been altered or tampered with. To determine whether a document is genuine, an examiner may attempt to confirm who authored or created the document, determine the timeframe in which it was created, identify the materials used in its preparation, or uncover modifications to the original text - such as changes, additions, or deletions to the original text.

Within the scope of finance, questioned document investigations are initiated when the authenticity of a firm's financial records are cast in doubt. Sometimes, a firm may "cook the books" to hide losses or inflate perceived profits. Such accounting scandals can be revealed by the forensic analysis of [financial statements](https://www.investopedia.com/terms/f/financial-statements.asp) and accounting documents. While securities today are represented digitally for the most part, in the past, the authenticity of physical stock certificates or bound coupons would be questioned, as con men and crooks would seek to counterfeit and sell them to unsuspecting investors. In the contemporary context, internal memos, email exchanges, invoices, or contracts can come under scrutiny and become the subject of a questioned document investigation.

If the investigation proves no wrong-doing, the case may be dropped, and the allegations of fraud or misconduct dropped. On the other hand, if the document is considered suspect, it may become crucial evidence in a larger criminal or civil case.
# What Is Take-Home Pay? Definition, Vs. Gross Pay, and Example

Take-home pay is the net amount of income received after the deduction of taxes, benefits, and voluntary contributions from a paycheck. It is the difference resulting from the subtraction of all deductions from gross income. Deductions include federal, state and local income tax, Social Security and Medicare contributions, retirement account contributions, and medical, dental and other insurance premiums. The net amount or take-home pay is what the employee receives. 

## The Basics of Take-Home Pay

The net pay amount listed on a paycheck is the take-home pay. Paychecks or pay statements report the income attributable to a given pay period. Pay statements list both earnings and deductions. Common deductions are income tax, [Federal Insurance Contributions Act](https://www.investopedia.com/terms/f/fica.asp) (FICA) and Medicare tax withholdings. There may also be less common deductions such as court-ordered child support or alimony, and uniform upkeep cost. The net pay is the amount remaining after all deductions are taken. Many paychecks also have cumulative fields that show the year-to-date earnings, withholdings, and deduction amounts.  

[Gross pay](https://www.investopedia.com/terms/g/grossincome.asp) is often shown as a line item on a pay statement. If it is not shown, you may calculate it either by dividing the annual salary by the number of pay periods, or by multiplying the hourly wage by the number of hours worked in a pay period.

For example, an employee earning an annual salary of $50,000 which is paid every two weeks will have gross pay of $1,923.08 ($50,000/26 pay periods) per paycheck.  

## Significance of Take-Home Pay vs. Gross Pay

Take-home pay can differ significantly from gross pay. As an example, an employee paid an hourly wage of $15/hour who works 80 hours per pay period has a gross pay of $1,200 (15 x 80 =1200). But, if after deductions the employee's take-home pay is $900, the employee is earning $11.25/hour as a take-home rate ($900/80=$11.25).

As seen, this employee's take-home pay rate differs significantly from the gross pay rate. Many [credit rating](https://www.investopedia.com/terms/c/creditrating.asp) and lending agencies will consider take-home pay when lending money for large purchases, such as vehicles, and property.

> **Article Sources**
>
> 1.  Internal Revenue Service. "[Tax Tutorial -- Module 1: Payroll Taxes and Federal Income Tax Withholding.](https://apps.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod01/tt_mod01_03.jsp)" Accessed Jan. 20, 2020.
# Unadjusted Bias: What it Means, How it Works, Example

![Unadjusted Basis](https://www.investopedia.com/thmb/RZ_mEa5bXqjh7uYiWGc-a4U9cV0=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/UnadjustedBasis4-3Final-2d27035113c146998032c7bf42af0f08.png)

*— Investopedia / Matthew Collins*

## What Is Unadjusted Basis?

Unadjusted basis refers to the original cost to purchase an asset. This amount includes not only the initial price the purchaser paid to acquire the asset but also includes other costs such as expenses and liabilities assumed to purchase it. [Adjusted basis](https://www.investopedia.com/terms/a/adjustedbasis.asp) is a related term, and refers to any adjustments made to the original purchase price of an asset over time. Unadjusted basis is used mostly in accounting nomenclature and is akin to the concept of [cost basis](https://www.investopedia.com/terms/c/costbasis.asp).

## Understanding Unadjusted Basis

Unadjusted basis is the initial value assigned to an asset. It includes the cash cost or price of an asset, any liability assumed to acquire the asset, any asset the purchaser gave to the seller as part of the transaction, and any purchase expenses incurred to acquire the asset. Purchase expenses may include commissions, fees, survey costs, [transfer taxes](https://www.investopedia.com/terms/t/transfertax.asp), or [title insurance](https://www.investopedia.com/terms/t/title_insurance.asp), for example.

## Example of Unadjusted Basis

Sam purchased a building from Emily using $100,000 in cash and a $50,000 mortgage. As part of the purchase agreement, Sam also paid $1,000 in [property taxes](https://www.investopedia.com/terms/p/propertytax.asp) attributed to a period of time in which Emily was still the owner of the property. Total closing costs and fees for Sam to purchase this property were $4,000. Sam's unadjusted basis for this property is $100,000 + $50,000 + $1,000 + $4,000 = $155,000.

## Unadjusted Basis in Practice

The unadjusted basis is used to calculate the gain on the sale of an asset. Extending Sam's purchase example above, assume Sam later sold this piece of property for $175,000, after costs and fees associated with the sale. He could determine his [return on investment](https://www.investopedia.com/terms/r/returnoninvestment.asp) by calculating the profit on the investment. He earned $20,000 ($175,000 - $155,000) net of expenses on this investment, which equates to a 12.9% return on investment (($175,000 - $155,000)/$155,000).

Unadjusted basis is also the starting point for determining [depreciation](https://www.investopedia.com/terms/d/depreciation.asp) on an asset, such as a plant or piece of manufacturing equipment, in [accelerated depreciation methods](https://www.investopedia.com/terms/a/accelerateddepreciation.asp). Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in the value of the asset over time. Accelerated depreciation methods allow the deduction of higher expenses from the unadjusted basis in the first years after purchase and lower expenses as the depreciated item ages.
# Uncovered Interest Arbitrage: What It Is, How It Works

![A forex arbitrage trader reclines in an office chair as they watch four monitors showing changes in international interest rates.](https://www.investopedia.com/thmb/TaVnz7j1NIi-Y41S0HJ5x_zXwy8=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/UncoveredInterestArbitrageWhatItIsHowItWorksGettyImages-497346852-3d3ea3651c48472e836ed2b148b42f81.jpg)

*— ismagilov / Getty Images*

## What Is Uncovered Interest Arbitrage?

Uncovered interest arbitrage is a form of [arbitrage](https://www.investopedia.com/terms/a/arbitrage.asp) that involves switching from a domestic currency that carries a lower interest rate to a foreign currency that offers a higher rate of interest on deposits. With uncovered interest arbitrage, there is a foreign exchange risk implicit in this transaction since the investor or speculator will need to convert the foreign currency deposit proceeds back into the domestic currency sometime in the future.

The term "uncovered" in this arbitrage refers to the fact that this foreign exchange risk is not covered through a forward or [futures contract](https://www.investopedia.com/terms/f/futurescontract.asp).

### Key Takeaways

*   Uncovered interest arbitrage is a form of arbitrage that involves switching from a domestic currency that carries a lower interest rate to a foreign currency that offers a higher rate of interest on deposits.
*   The term "uncovered" in this arbitrage refers to the fact that this foreign exchange risk is not covered through a forward or futures contract.
*   Uncovered interest arbitrage involves an unhedged exchange of currencies in an effort to earn higher returns due to an interest rate differential between the two currencies.

## How Uncovered Interest Arbitrage Works

Uncovered interest arbitrage involves an unhedged exchange of currencies in an effort to earn higher returns due to an interest rate differential between the two currencies. Total returns from uncovered interest arbitrage depend considerably on currency fluctuations since adverse currency movements can wipe out all the gains and in fact even lead to [negative returns](https://www.investopedia.com/terms/n/negative-return.asp). If the interest rate differential obtained by investing in a foreign currency is 3%, and the foreign currency appreciates against the domestic currency by 2% during the [holding period](https://www.investopedia.com/terms/h/holdingperiod.asp), the total return from this arbitrage activity is 5%. On the other hand, if the foreign currency depreciates by 4% during the holding period, the total return is -1%.
# Usance: What it is and How it Works in International Trade

## What Is Usance?

In international trade, usance (sometimes called tenor) is the allowable period of time, permitted by custom, between the date of the bill and its payment. The usance of a bill varies between countries, often ranging from two weeks to two months. It is also the interest charged on borrowed funds. Usance is derived from the action of usury, as well as the [use of goods](https://www.investopedia.com/terms/r/rawmaterials.asp) for economic purposes.

## Understanding Usance

Usance applies to many items purchased on credit. For example, a company that purchases materials from a supplier will receive the goods today. The bill will be delivered today, but the company might have up to 30 days to pay it. The 30 days represents the usance for the sale.

When a person lends money, they will charge a usance in exchange for the service. In this case, usance relates to the profits made from the lending of principal.

Usance is the process of using goods to fulfill economic needs. This involves refining materials into [finished goods](https://www.investopedia.com/terms/c/consumer-goods-sector.asp) or the consumption of goods to satisfy needs.
# Usual, Customary and Reasonable Fees: What They Are, How They Work

## What are 'Usual, Customary and Reasonable (UCR) Fees'?

Usual, customary and reasonable (UCR) fees are out-of-pocket fees that a health insurance policyholder must pay for services. UCR fees are based on the services provided to policyholders, as well as the area of the country where the services are being provided.

## Understanding Usual, Customary and Reasonable Fees

A fee is considered usual, customary and reasonable if:

1.  It is a fee usually charged for a doctor for a service, and
2.  It falls within a price range that other doctors in the area charge, and
3.  It is for a service deemed necessary under the current conditions.

UCR fees are monitored by the insurance company, which determines whether they make sense when compared to what doctors in the area are charging. If a doctor charges more than what the insurance company determines to be usual, customary and reasonable, the policyholder may be responsible for the difference between the amount charged for the service and the amount covered by the insurance company.

The amount of usual, customary and reasonable fees that are charged for services depends on a variety of factors, and the conditions under which a UCR fee is charged are outlined in the policy. Many medical insurance policies, for example, break providers into “[network](https://www.investopedia.com/terms/p/preferred-provider-organization.asp)” and “out of network” groupings. Using an in-network provider may result in no UCR fees being charged, but using an out-of-network doctor may result in the policyholder is responsible for some or even all of the service costs.

Many policyholders only think about the cost of medical services after the service is provided, and can be caught off guard when their insurance doesn’t cover all expenses. In order to mitigate the possibility of a big bill, policyholders should check whether a doctor is in the insurer’s network, talk to the doctor about the cost of any service before the service is provided, and ask the insurer how much of the fee will be covered.

## Usual, Customary and Reasonable Fees and Medicare

Medicare UCR charges are not regulated by state or federal agencies, but Medicare does publish its UCR fee schedule. This is commonly referred to as "Medicare Allowable" charges. Providers who participate with [Medicare](https://www.investopedia.com/terms/m/medicare.asp) agree to accept the Medicare allowable charge as full payment. Patients are still responsible for their co-insurance and deductible.

 Medicare providers may choose not to bill the patient for amounts above the Medicare allowable fee schedule. It is important to verify that a provider "Accepts Medicare Assignment" or is a "Medicare Provider" to avoid unexpected and potentially large out-of-pocket expenses.
# Valoren Number: What it Means, How it Works

![Swiss stock market data on a screen overlaid with the Swiss flag.](https://www.investopedia.com/thmb/C3438tJ6v9aPNrujyjL6VJ9FMJQ=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/ValorenNumber-d59b0fe205d94cde9e19dfdf7819de85.jpg)

*— Javier Ghersi / Getty Images*

## What Is a Valoren Number?

A valoren number is an identification number assigned to financial instruments in Switzerland. These numbers are similar to the [CUSIP numbers](https://www.investopedia.com/terms/c/cusipnumber.asp) that are used in Canada and the U.S. A typical valoren number is between six to nine digits in length.

## How a Valoren Number Works

A valoren number is a numeric code that intrinsically has no meaning. When a new valoren is needed, the next one from the list is simply allocated. An instrument's number indicates nothing about the instrument itself. Market data firms and other financial institutions throughout Europe typically refer to Swiss companies and/or store trade data on these companies using valoren numbers as a means of security identification. Unlike [ISIN](https://www.investopedia.com/terms/i/isin.asp)s or CUSIPs, valoren numbers have no data implanted in the numbers.

Swiss Valoren numbers are issued by SIX Financial Information, a subsidiary of SIX Group, a multinational financial data vendor based in Zurich, Switzerland. The company also has offices in over 20 countries. The company provides market data, which it gathers from the world's major trading venues directly and in real-time. Its database has structured and encoded securities administration data for more than 20 million financial instruments. 

SIX Financial Information was originally called Telekurs. In 1996, the firm was restructured into a holding company, and it launched an expansion of its product range. In 2007, Telekurs acquired part of the Fininfo Group. In 2008, The Telekurs Group merged with SWX Group, SIS Swiss Financial Services Group, and SEGA Intersettle to form SIX Group. Telekurs Financial was renamed to SIX Telekurs and became the Financial Information division of SIX Group. On April 23, 2012, the use of the "Telekurs" name was phased out.

A valoren number can be used for a number of purposes in identifying a financial instrument. Globally, a valoren number is allocated for any type of financial instrument which meets the allocation rules. It can be used in conjunction with the Market Identifier Code (MIC) and the currency code to uniquely identify a traded instrument. It can also be used in transaction reporting and for position keeping.

In Switzerland and Liechtenstein, the valoren number is the main identifier in the Swiss Value Chain; it is used as the main identifier by financial institutions throughout the region and beyond. Valoren numbers for derivatives may be reused after the derivative expires.
# Variable Coupon Renewable Note (VCR): Meaning, How It Works

## Definition of Variable Coupon Renewable Note (VCR)

A variable coupon renewable note (VCR) is a renewable fixed income security with variable coupon rates that are periodically reset. The renewable note is a type of debt security with a weekly maturity. The principal of this security is reinvested automatically at new interest rates every week it matures.

### Key Takeaways

*   Variable coupon renewable note matures every week, with the principal reinvested at a new interest rate that is reset at a fixed spread over a reference rate.
*   Typically, this reference rate is the 91-day Treasury bill rate.
*   The note is reinvested automatically and continuously until the owner requests otherwise.

## Understanding Variable Coupon Renewable Note (VCR)

A variable coupon renewable note (VCR) is a debt security that matures every week, with the principal reinvested at a new interest rate that is reset at a fixed spread over a [reference rate](https://www.investopedia.com/terms/r/referencerate.asp).

Usually, the [coupon](https://www.investopedia.com/terms/c/coupon.asp) is set on a weekly basis at a fixed spread over the [Treasury bill](https://www.investopedia.com/terms/t/treasurybill.asp) rate, specifically the 91-day T-bill. The security is reinvested automatically and continuously, until the owner of the security requests that the security is to be no longer reinvested. T-bills, which the initial rate of the VCR is linked to, are backed by the [full faith and credit](https://www.investopedia.com/terms/f/full-faith-credit.asp) of the U.S. government and have a maturity of one year or less.﻿﻿

The coupon on a VCR note is payable quarterly, renewing continuously at the quarterly intervals. So, every 91 days, the maturity of the note extends another 91 days. It has an [embedded put option](https://www.investopedia.com/terms/e/embeddedoption.asp) that allows the note holder to exercise the put, or "put" the notes to the issuer [at par](https://www.investopedia.com/terms/a/at-par.asp) on coupon dates. This means that an issuer served with a put notice is obligated to buy back the note from the debt holder, but at a lower spread to the reference rate.

VCR notes are somewhat different from variable rate renewable notes (VRR). While coupon rates on VCRs vary weekly, rates on VRRs vary monthly. In addition, the coupon rate on variable rate renewable notes equals a fixed spread over the 1-month [commercial paper](https://www.investopedia.com/terms/c/commercialpaper.asp) rate.

In effect, variable rate renewable notes will bear interest at a specified rate that will be reset periodically based on the 1-month commercial paper rate and any spread and/or spread multiplier, subject to the minimum interest rate and the maximum interest rate, if any.

> **Article Sources**
>
> 1.  U.S. Department of the Treasury, Bureau of the Fiscal Service. "[Treasury Bills](https://www.treasurydirect.gov/indiv/research/articles/res_invest_articles_tbills_104.htm)." Accessed April 3, 2021.