Covered Stock (Coverage)

AAA

DEFINITION of 'Covered Stock (Coverage)'

A stock that is monitored or covered by an analyst at a brokerage firm for the purpose of issuing research reports that are disseminated to the firm's clients. Upon commencement of coverage, the analyst will usually publish an "initiating coverage" report on the stock, and subsequently issue periodic updates.

INVESTOPEDIA EXPLAINS 'Covered Stock (Coverage)'

The number of analysts covering a stock can vary widely. While widely held blue chips may be covered by as many as 30 to 40 analysts, small companies that are not well-known may only be covered by one or two analysts. An analyst who stops covering a stock will generally issue a "discontinuing coverage" report.

RELATED TERMS
  1. Common Stock Equivalent

    Securities such as stock options, warrants, preferred bonds, ...
  2. Analyst

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

    A professional designation given by the CFA Institute (formerly ...
  4. Coverage Initiated

    When a brokerage or analyst issues his or her first rating on ...
  5. Insider Trading

    The buying or selling of a security by someone who has access ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
Related Articles
  1. Analyst Recommendations: Do Sell Ratings ...
    Investing Basics

    Analyst Recommendations: Do Sell Ratings ...

  2. Finding Undiscovered Stocks
    Options & Futures

    Finding Undiscovered Stocks

  3. Small Cap Research Can Have A Big Impact
    Investing Basics

    Small Cap Research Can Have A Big Impact

  4. Why There Are Few Sell Ratings On Wall ...
    Investing Basics

    Why There Are Few Sell Ratings On Wall ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center