Definition of cover

1. taking assignment of collateral as protection against borrower default. Synonymous with security. Also, allocating a part of net income against possible bad debt losses.
2. to offset an account withdrawal by making a deposit.
3. purchase of currency or financial futures to offset or close a previously taken position. A short cover involves buying against contracts expiring in the same delivery month.
4. buying back securities previously sold in a short sale
5. in corporate finance, ability of a corporation to service its debt obligations out of earnings.
6. in underwriting, the second highest bid in competitive bidding for a bond issue, called the covering bid.

1. to buy back contracts previously sold; said of an investor who has sold stock or commodities short.
2. in corporate finance, to meet fixed annual charges on bonds, leases, and other obligations out of earnings.
3. amount of net-asset value underlying a bond or equity security. Coverage is an important aspect of a bond's safety rating. See also debt coverage ratio.

1. to buy back contracts previously sold; said of an investor who has sold stock or commodities short.
2. in corporate finance, to meet fixed annual charges on bonds, leases, and other obligations, out of earnings.
3. amount of net-asset value underlying a bond or equity security. Coverage is an important aspect of a bond's safety rating.

to place insurance in force on an individual. individuals, or an organization.