Initiate coverage

Initiate coverage

(1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position).

Initiate Coverage

In technical analysis, to begin tracking the performance of a stock. Initiating coverage involves looking at a stock's past performance in the hope of observing indicators for future performance. When a brokerage or other organization initiates coverage, it usually announces that it is doing so, along with its first assessment. For example, a brokerage may announce that it has initiated coverage of Stock ABC with the recommendation of strong sell.