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.




Taobiz 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.