Definition of watch list
- The animals are on a watch list of species that could become extinct soon.
: to keep vigil as a devotional exercise
: to be awake during the night
: to be attentive or vigilant
: the act of keeping awake to guard, protect, or attend
: the state of being wakeful
: a wake over a dead body
: a simple series of words or numerals (such as the names of persons or objects)
: an official roster : roll
: catalog, checklist
: to make a list of : enumerate
: to include on a list : register
: to place (oneself) in a specified category
: to tilt to one side
: to cause to list
: a deviation from the vertical : tilt
: a band or strip of material: such as
: to cut away a narrow strip from the edge of
: to prepare or plant (land) in ridges and furrows with a lister
: please, suit
: wish, choose
: inclination, craving
: to listen to : hear
A watch list is a list of securities that regulators, brokerages, research firms, or other entities are interested in monitoring.
Watch lists can be good or bad. An investor can start a watch list, for example, of stocks that he or she wants to keep current on and receive news alerts about.
For example, Moody’s, Standard & Poor’s, and Fitch evaluate companies, countries, states and other entities and assign a creditworthiness rating. These evaluations involve reviewing a company’s competitive environment, financial performance and management ability. When the ratings agency has concerns about a company in light of its current rating and wants to see how the company performs for a while before changing the company’s credit rating, it puts the company on a watch list. This means the agency may lower the company's credit rating.
Being placed on a watch list can be harmful to a company’s shareholders and lenders because it is generally a predecessor to receiving a lower credit rating, regulatory investigation or other significant negative event. As mentioned, however, being placed on a watch list can also be a benign event.
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