The term quid pro quo derives from Latin and literally means “something for something”. Today the expression quid pro quo is used to denote a bargaining arrangement, in which one party offers a product or service in exchange for something else of value. Much like in other professional domains, in a world of finance acts of quid pro quo are quite common. Thus, quid pro quo may apply to various business deals, such as mergers, acquisitions, as well as various joint ventures. Quid pro quo may also describe mutually beneficial trade agreements and other distributive deals. However, quid pro quo may also have negative connotations. Sometimes a quid pro quo pact may be at the core of a conflict of interests and lead to a corporate transgression. One example of negative quid pro quo would be a situation in which a brokerage firm issues a buy recommendation for a company regardless of objective merits in exchange for that company’s business. |
