The practice of buying initial public offerings at the offering price and then...
To buy and sell an equity within a short period of time to take profits is called flipping. Some investors buy IPO shares near the offering price and immediately sell their stake as the price jumps in the aftermarket. The practice of flipping may be discouraged by the underwriters though penalties and waiting periods.
Selling a new eTopps card on eBay shortly after it has been allocated.
The practice of buying and selling a security quickly in order to turn a profit. An example is an investor who purchases a stock at an initial public offering and then resells it almost immediately in the aftermarket or secondary market. Some securities are underwritten with penalties to discourage flipping.
Selling shares quickly for a big profit, usually within a 24-hour period after the start of trading in the IPO. This technique only works effectively during a speculative bull market in which demand far outstrips supply. The amount of flipping that occurs can be estimated by comparing the total turnover for a hot IPO offering with the actual number of shares issued. For instance, if total number of shares issued is 4 million, then any amount of trading volume above this figure is a strong indication of flipping.
FLIPPING occurs when an investor buys an INITIAL PUBLIC OFFERING(IPO) at the OFFERING PRICE and quickly sells it once the IPO starts trading on the open market. LEAD UNDERWRITERS are allowed to impose a PENALTY BID on BROKERS to discourage FLIPPING.
the act of selling shares immediately after an initial public offering. Investment banks that underwrite new stock issues attempt to allocate shares to new investors that indicate they will retain the shares for several months. Often management and venture investors are prohibited from selling IPO shares until a "lock-up period" (usually 6 to 12 months) has expired.
When an investor buys an IPO at the offering price and then sells the stock soon after it starts trading on the open market.
The turnover of property. An investor buys a property to immediately sell it for a profit.
The sale of a company shortly after its purchase.
Buying shares in an initial public offering (IPO), and then selling the shares immediately after the start of public trading to turn an immediate profit.
Flipping is practiced by market participants who try to get shares of stock at the IPO price and immediately sell the shares in the aftermarket. While many flippers are small players looking for a point or two of quick profit, large, well-known mutual funds also practice flipping. It is a controversial practice because the underwriters want to control the trading in the IPO immediately after it goes public and the company wants their shares placed with long-term investors. However, flipping also provides liquidity for additional purchases of stock. The underwriters try to discourage flipping by placing stock in the hands of long term investors, particularly ones that have promised aftermarket orders. Nevertheless, flippers who are identified by underwriters move on to flip again by setting up new firms. Brokerage firms try to curb flipping by individual investors by imposing waiting periods and fees on sellers and a penalty bid on the individual's broker. To the underwriters dismay, however, the largest institutional investors and mutual funds continue to flip with impunity because of their great size and influence.
This is the practice by institutional and retail investors of buying shares in an IPO and then selling them immediately in the aftermarket in the hope of earning a profit. Brokerage firms have tried to discourage this practice by imposing voluntary holding periods on accounts that have received an allocation. Brokerage firms want to encourage customers to hold the stock for some period after the IPO to encourage price stability. Brokerage firms have tried to enforce no flipping policies by limiting future access to IPOs and by placing a penalty bid on the broker of accounts who flip. These anti flipping policies have largely been ignored by institutional clients because of their market powers and have been enforced only against individual clients.
The act of buying shares in an IPO and selling them immediately for a profit. Brokerage firms underwriting new stock issues tend to discourage flipping, and will often try to allocate shares to investors who intend to hold on to the shares for some time. However, the temptation to flip a new issue once it has risen in price sharply is too irresistible for many investors who have been allocated shares in a hot issue.
Flipping is a term, used primarily in the United States, which refers to the practice of buying an asset and quickly reselling (flipping) it for profit.