flipping

flipping definition - finance
Purchasing shares in an initial public offering (IPO) from the underwriter and then immediately selling them to retail investors in the secondary market at much higher prices. Institutional investors typi-cally flip IPO shares, but many brokerage firms have policies that prevent retail customers from flipping. If investors violate the policy, they will be prevented from participating in future IPOs.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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