If HGTV had a financial market counterpart, flippers would be the stars of that channel’s shows.
Just as house flippers buy houses, renovate them fast, and sell them for a quick profit (at least, that’s their hope), flippers in the financial world do the same with stocks. They buy them fast, hold onto them for maybe a couple days, and then sell them for a profit before turning around and finding another stock to “flip.”
Is this risky? It can be. But for the most part, flippers believe that they know their way around the financial markets and are able to spot a good deal, especially when it comes to IPOs, as they spend hours on the golf course with the investment bankers/underwriters who are doing the deal. IPOs which are 10-20x over-subscribed are almost always "hot," with stocks coming at $12 and making their first flipper-friendly print at $20. Easy way to make a fast 8 bucks...if you can get it.
Related or Semi-related Video
Finance: What is an IPO?25 Views
And finance allah shmoop What is an i p o
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both well actually most people just spell it out I
po It stands for initial public offering In the three
words tell the story and i pl refers to a
company who's raising money by selling shares of itself to
the public for the first time a maiden voyage in
public funding if you will Whatever dot com has forty
million shares outstanding after three private rounds with venture capitalists
and private investors it wants to raise money to go
big internationally And for the first time it will offer
shares to joe and jill public And that means that
all of it shares will be tradable publicly on the
open market like on nasdaq or the new york stock
exchange That is the insiders early investors founders et cetera
will be able to just call their broker at schwab
or fidelity or wherever and sell their shares get liquid
and buy themselves a maserati because it's not what everyone
does after a nice meal So whatever dot com sells
ten million shares a twelve bucks each to raise one
hundred twenty million dollars which they can spend to build
out offices all over the world So yeah that's an
ai po and that's Why a company generally wants to
make shares available to the public because once you've made
an initial public offering and you make money off the
sales of your stock you khun by as many hippos
as you like and just remember to feed them three
times a day they get Cranky if they go too 00:01:35.158 --> [endTime] long in between No
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What is a hot issue? A hot issue is basically just an IPO that people are really psyched about. This does not necessarily mean that the company is...