Flipping

Flipping is the act of buying sahres in an IPO and selling them immediately for a profit. This practice is often discouraged by brokerage firms that underwrite new stock issues, and they would often try to allocate shares to investors who intend to hold on to the shares for some time. However, the temptation to flip a new issue once the shares has risen in price sharply is just too irresistible for many investors, especially those who have allocated shares in a hot issue.

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