(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).
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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.
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