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 ?
Eighty-five of 138 metropolitan statistical analyzed in the report (62 percent) posted a year-over-year increase in their home flipping rate in Q1 2019, including Columbus, Georgia (up 83 percent); Raleigh, North Carolina (up 73 percent); Charlotte, North Carolina (up 65 percent); McAllen-Edinburg, Texas (up 55 percent); and Milwaukee, Wisconsin (up 49 percent).
The average gross flipping profit of $65,000 in 2018 represented an average 44.8 percent return on investment (percentage of original purchase price), down from 50.3 percent in 2017 and down from an all-time high average gross flipping ROI of 51.0 percent in 2016.
In addition, flipping the classroom has provided him more time in the tutorial to do more of the hands-on work with science equipment that he wouldn't have had the opportunity to do through a lecture.
Blomquist: While flippers appear to still be behaving rationally in most markets, too much flipping is still unhealthy for a market, and we are starting to see an increasing number of markets that are reaching new highs for flipping rates or hitting nine- or 10-year highs for flipping rates, which is an indication that those markets are at risk for overheating given the disproportionate share of home flips.
According to the Lamudi guide to flipping, the ability to identify up-and-coming areas is extremely important.
Despite these studies and the lack of much hard evidence suggesting that flipping results in more effective teaching or learning, many administrators are encouraging their faculty to try flipping.
3 Christopher Nwosisi, Alexa Ferreira,Warren Rosenberg and Kelly Walsh, "A Study of the Flipped Classroom and Its Effectiveness in Flipping Thirty Percent of the Course Content", International Journal of Information and Education Technology 6, no.
Instead of lecturing, flipping his classroom has also allowed Christensen to do more activities in class and spend more one-on-one time with each student.
Most binary image watermarking algorithms based on flipping pixels would use the scoring standard proposed by Wu and Liu [8].
If low-income students lack access to computers at home or to reliable Internet access, flipping may be a nonstarter in some schools.
While most Florida flipping involves getting a bait through overhead cover, there are actually two types of flipping done and many experts carry two rigs.
SCANDAL-hit MPs have been accused of being flipping greedy in grabbing the pounds 24,000 a year second homes allowance.