Flipping


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Flipping

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

1. The act or practice of buying IPOs only to resell them at a substantial profit very quickly. Flipping is a short-term investment strategy that operates on the assumption or existence of liquid markets. Institutional investors engage in flipping at a greater rate than individual investors as they have the most shares available to them at the offer price. Flipping, when done over and over by a large number of investors, can lead to a speculative bubble. See also: Stock jobbing.

2. The act or practice of buying real estate at a low or moderate price with the intent to resell it for a profit in a short amount of time. Flipping takes two main forms. One may buy several properties, intending to sell them in only a few months hoping that that price goes up. This is most common in areas expected to become big developments. On the other hand, one may buy a single property often with improvements already on it and renovate it with the intention to sell it for a much higher price.

flipping

The immediate selling of shares purchased in an initial public offering. Flipping is especially popular in a hot IPO market when newly issued shares can soar in price when they hit the secondary market. Investment banking firms underwriting new issues generally discourage flipping, in large part because it can depress a stock's price in the secondary market.
Case Study In late 2001 UBS PaineWebber issued a memo to its branch offices that the firm intended to fine its brokers whose customers engaged in flipping shares purchased in initial public offerings underwritten by the firm. According to the policy, brokers would be required to pay a fine equal to 200% of their original commission. Following complaints from the firm's brokers, PaineWebber withdrew the proposal but indicated it would monitor the investment activity of clients who participated in new issues and adjust future allocations of shares in subsequent IPOs. Investment banking firms dislike flipping because it tends to destabilize trading and depress the stock's price, both of which are likely to anger management of the issuing company.
References in periodicals archive ?
While we do not advocate for flipping classes every day in humanities classes, we believe implementation is more likely to be successful when students have time to understand how the strategy works.
Most of the research on flipping has been conducted in high school and higher-education STEM classes (Gehringer & Peddycord, 2013; Johnson & Renner, 2012; Marcey & Brint, 2012; Strayer, 2007), so it may seem difficult to gauge what content is appropriate for flipping in a middle or high school ELA classroom at first.
TOPSY TURVY Flipping is not the only gymnastic trick that magnets can perform when hit by spin-polarized currents.
This flipping trend is not just the domain of large investors," he said.
The show is a simple concept and will be heavily dependent on casting the perfect flipping mom.
Since that initial report, researchers have confirmed a second case of base flipping and have interpreted the shapes of other enzymes as suggesting that this unusual mechanism occurs in many DNA-protein encounters, including the essential ones by which enzymes repair damaged DNA.
He continued, "The fewer foreclosure deals and longer flipping timelines that we see in the data demonstrate that flippers are getting squeezed on both sides of the profit equation.
The most cost effective method of flipping is to resell the property before the closing so as to save on the expenses of closing and the necessity of coming up with the entire purchase price.
E-Book Systems, the leader in Digital Flip(R) online publishing technology, announces today that national publication The CPA Technology Advisor has adopted its 3-D page flipping format for its online publication.
We are excited to give our readers the convenience of enjoying our publication's online version in E-Book's page flipping format," says Holly Hoffer, publisher of Ground Support Magazine.
I particularly like the flipping functions that preserve the interface of a book, which is a vital part of the picture book storytelling experience.