quid pro quo

An equal exchange or substitution, as in I think it should be quid pro quoyou mow the lawn and I'll take you to the movies. This Latin expression, meaning "something for something," has been used in English since the late 1500s.

A fair exchange; the phrase is most frequently used in diplomacy: ®ÄúThe Chinese may make some concessions on trade, but they will no doubt demand a quid pro quo, so we must be prepared to make concessions too.®Äù From Latin, meaning ®Äúsomething for something.®Äù

Quid Pro Quo

A Latin phrase meaning "something for something". This term is typically used in financial circles to describe a mutual agreement between two parties in which each party provides a good or service in return for a good or service.

Investopedia Commentary

Quid pro quo agreements are sometimes viewed negatively. For example, in a quid pro quo agreement between a large financial house and a company, the financial house might alter poor stock ratings in exchange for company business. In response to these potential occurrences, the NASD has issued rules in order to ensure that firms put customers&#8217 interests before their own. A positive example of a quid pro quo agreement is a soft dollar agreement. In a soft dollar agreement, one firm (Firm A) uses another firm's (Firm B) research. In exchange, Firm B executes all of Firm A's trades. This exchange of services is used as payment in lieu of a traditional, hard dollar payment.

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See also: Allotment, Anti-Reciprocal Rule, Hard Dollars, Initial Public Offering - IPO, National Association of Securities Dealers - NASD, Soft Dollar

quid pro quo

An equal exchange that a person or firm makes with another person or firm. In the securities industry institutional investors provide orders to brokerage firms as a quid pro quo for in-depth research.