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.

Use flipping in a sentence

You should try to make sure that you know just what you are getting any time you want to take on some flipping.

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The investment firm prided itself in its flipping ability, often making its investors several thousands of dollars a day in profit.

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When the newly married couple came into a small amount of money, they decided to try flipping a house to see if they could make any money on it.

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