Channel Check

AAA

DEFINITION of 'Channel Check'

A method of independent stock analysis whereby company information is supplied by third parties. Channel checks are most often conversations or personal research done by researchers or third-party information providers with direct managers of businesses within a certain sector or industry. Channel checks are thought of as getting the information "straight from the horse's mouth."

INVESTOPEDIA EXPLAINS 'Channel Check'

Many times, when stock analysts provide ratings for specific companies, the company being analyzed supplies the information that is used. When doing a channel check, the analyst is using information that is not supplied by the company because he or she is independently investigating the company's financial health.


Channel checks have come under scrutiny in recent years as regulators question whether such research should be considered inside information, or just personal research.

RELATED TERMS
  1. Analyst

    A financial professional who has expertise in evaluating investments ...
  2. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly ...
  3. Upgrade

    A positive change in the rating of a security. An upgrade is ...
  4. Rating

    1. An evaluation of a corporate or municipal bond's relative ...
  5. Downgrade

    A negative change in the rating of a security. This situation ...
  6. Security Analyst

    A financial professional who studies various industries and companies, ...
Related Articles
  1. Options & Futures

    Tailoring Your Investment Plan

    Start your own investing adventure with the help of some simple guidelines.
  2. Mutual Funds & ETFs

    A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.
  3. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  4. Markets

    Intangible Assets Provide Real Value To Stocks

    Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
  5. Economics

    Cashing In On Macroeconomic Trends

    Learn to identify the things that may impact your investments down the road.
  6. Trading Strategies

    How do traders interpret a Downside Tusuki Gap pattern?

    Understand the logic and rational behind a downside Tasuki gap candlestick pattern, which traders look to as a bearish continuation signal.
  7. Fundamental Analysis

    What is the difference between enterprise value and equity value?

    Valuating a business accurately depends heavily on the purpose of the valuation. Learn how enterprise value and equity value can help clarify valuations.
  8. Retirement

    Technical Top-Down Investing: Analyzing The Market

    The top-down investment strategy depends on economy and market strength. Find out what you should know before jumping in.
  9. Investing

    How To Analyze Restaurant Stocks

    Don't put your money on the table before getting a taste for analyzing this sector.
  10. Active Trading

    Tales From The Trenches: Location Is Everything

    When a candle pattern re-occurs near a moving average, it may indicate future support or resistance.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center