{"url_path":"/sec/eqs/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Quantitative and Qualitative Disclosure about","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-20","source_url":"https://www.sec.gov/Archives/edgar/data/878932/0001712543-26-000039-index.html","accession_number":"0001712543-26-000039","cik":"0000878932","ticker":"EQS","issuer_name":"EQUUS TOTAL RETURN, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/878932/0001712543-26-000039-index.html","primary_entity_key":"0000878932","primary_entity_name":"EQUUS TOTAL RETURN, INC."},"word_count":300,"has_tables":true,"body_markdown":"** **\n\nItem 3. Quantitative and Qualitative Disclosure about\nMarket Risk\n\n** **\n\nWe are\nsubject to financial market risks, including changes in interest rates with respect to investments in debt securities and outstanding\ndebt payable, as well as changes in marketable equity security prices. In the future, we may invest in companies outside the United States,\nincluding in Europe and Asia, which would give rise to exposure to foreign currency value fluctuations. We do not use derivative financial\ninstruments to mitigate any of these risks. The return on investments is generally not affected by foreign currency fluctuations.\n\n \n\nOur investments\nin portfolio securities consist of some fixed-rate debt securities. Since the debt securities are generally priced at a fixed rate, changes\nin interest rates do not directly affect interest income. In addition, changes in market interest rates are not typically a significant\nfactor in the determination of fair value of these debt securities, since the securities are generally held to maturity. We determine\ntheir fair values based on the terms of the relevant debt security and the financial condition of the issuer.\n\n \n\nA major\nportion of our investment portfolio consists of debt and equity investments in private companies. Modest changes in public market equity\nprices generally do not significantly impact the estimated fair value of these investments. However, significant changes in market equity\nprices can have a longer-term effect on valuations of private companies, which could affect the carrying value and the amount and timing\nof gains or losses realized on these investments. A small portion of the investment portfolio could also consist of common stock in publicly\ntraded companies. These investments are directly exposed to equity price risk, in that a hypothetical ten percent change in these equity\nprices would result in a similar percentage change in the fair value of these securities."}