[kwid proh kwoh] 
| 1. | (italics ) Latin. one thing in return for another. |
| 2. | something that is given or taken in return for something else; substitute. |
| quid pro quo (kwĭd' prō kwō') n. pl. quid pro quos or quids pro quo An equal exchange or substitution. [Latin quid prō quō : quid, something + prō, for + quō, ablative of quid, something.] |
A fair exchange; the phrase is most frequently used in diplomacy: “The 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.” From Latin, meaning “something for something.”
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’ 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.
Related Links
Understanding Pro-Forma Earnings
See also: Allotment, Anti-Reciprocal Rule, Hard Dollars, Initial Public Offering - IPO, National Association of Securities Dealers - NASD, Soft Dollar
quid pro quo
quid pro quo
An equal exchange or substitution, as in I think it should be quid pro quo
you 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.