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Finance Dictionary and Glossary of Investment Terms
The practice of buying initial public offerings at the offering price and then reselling them once trading has begun, usually for a substantial profit. This is more commonly done by institutional investors than retail investors, because institutional investors get most of the IPO shares at the offering price. Flipping is most profitable in a hot IPO market, when the price of an IPO often rises dramatically above the offering price on the first day. also called stagging.
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.