Watch List

AAA

DEFINITION of 'Watch List'

1. A list of securities being monitored closely by a brokerage or exchange in order to spot irregularities. Firms on the watch list might be suspected of regulatory violations, about to issue new securities, attracting usually heavy volume, etc.
2. A list of securities being monitored for potential trading or investing opportunities. An investor or trader may have a watch list of several, dozens or even hundreds of trading instruments. The investor waits for certain criteria to be met--such as trading over a certain volume, breaking out of a 52-week range or moving above its 200-day moving average--before placing trade orders.


Also called a grey list.

INVESTOPEDIA EXPLAINS 'Watch List'

1. A watch list is a used to specify companies where irregularities are present, or where the potential for insider trading or other corruption exists. The watch list can be considered a surveillance tool used to identify risks from customers, consultants, suppliers and other business partners.


2. Many trading platforms give investors and traders the opportunity to create watch lists and screen, or filter, for certain conditions to be met. The user can specify both fundamental and technical criteria in an attempt to find high probability trading or investing opportunities. The watch list may provide an alert, such as an audible alert, text message or email, that warns the user that conditions are about to be met or have been met.

RELATED TERMS
  1. Trading Platform

    Software through which investors and traders can open, close ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  3. Security

    A financial instrument that represents: an ownership position ...
  4. Stock Idea

    A note of suggestion or thinking that initiates the further analysis ...
  5. Currency Trading Platform

    A type of trading software used to help currency traders with ...
  6. Securities-Based Lending

    The practice of making loans using securities as collateral. ...
RELATED FAQS
  1. How can a company reduce the unsystematic risk of its own security issues?

    Companies can reduce the unsystematic risk of their own security issues simply by doing the most effective job possible of ... Read Full Answer >>
  2. How do a corporation's shareholders influence its Board of Directors?

    The 21st century has seen a rapid increase in shareholder activism, such as the general awareness, involvement and influence ... Read Full Answer >>
  3. What is a 'busted' convertible bond?

    In finance, a convertible bond represents a hybrid security that offers debt and equity features and risks. While a convertible ... Read Full Answer >>
  4. What is a private secondary market?

    Two kinds of private secondary markets exist. The first is a form of buying and selling of pre-existing financial commitments ... Read Full Answer >>
  5. What kind of assets can be traded on a secondary market?

    Virtually all types of financial assets and investing instruments are traded on secondary markets, including stocks, bonds, ... Read Full Answer >>
  6. What constitutes a secondary market?

    A secondary market covers the trading of any good, commodity, security or asset after it has been issued or created. Although ... Read Full Answer >>
Related Articles
  1. Active Trading

    Would You Profit As A Day Trader?

    Market timing is surrounded by controversy, but does it work?
  2. Trading Strategies

    How To Outperform The Market

    Active trading is an investing style that aims to beat the market. Find out how it works, and whether it will work for you.
  3. Trading Strategies

    The Daily Routine Of A Swing Trader

    From pre-market to after hours, see what you need to do to capture gains quickly.
  4. Trading Strategies

    Day Trading Strategies For Beginners

    From picking the right type of stock to setting stop-losses, learn how to trade wisely.
  5. Forex Education

    Mastering Short-Term Trading

    Making money in a pressure-cooker environment is all about minimizing risk on hot picks.
  6. Active Trading

    Tales From The Trenches: Don't Count On Luck

    ChartAdvisor experts illustrate why it's important to stick to your strategy.
  7. Investing

    The Number One Reason Why Most Traders Fail

    We show you the simple tools, availble to everyone, to succeed as an active trader: education, experience, charts, vision, and risk management systems.
  8. Investing

    Is There Still Opportunity in Japanese Stocks?

    Japanese stocks’ strong performance has prompted market watchers to question whether there’s still a case for adding exposure to the Land of the Rising Sun
  9. Credit & Loans

    Why Securities-Based Lending Became A Big Business

    Securities-based lending—using one's investments as collateral to secure a loan—has become big business for brokers and banks. Should we be concerned about its increasing popularity?
  10. Economics

    Do Transport Stocks Signal a U.S. Selloff?

    The Dow Jones Transportation Average index has underperformed the broader DJ Industrials Average, leading some market watchers to speculate a selloff.

You May Also Like

Hot Definitions
  1. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  2. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  3. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  4. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  6. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!