Follow-Up Action
Any subsequent trading that affects an established position in a security or derivative. Follow-up actions are taken to change the amount of exposure an investor has in a position, or to limit a strategy's losses or profits. Investopedia Says:
For example, an investor who is long in shares of Company XYZ may be nervous about future losses. He or she could take the follow-up action of purchasing a put option for the stock, which would minimize losses in the event of a downturn. Related Terms:
Derivative
Economic Exposure
Investment Strategy
Market Exposure
Put Option
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