Flipper

AAA

DEFINITION of 'Flipper'

1. A short-term investor or day trader who buys pre-IPO shares, swiftly spinning them out into public markets for a quick profit.

2. A real estate participant who purchases a home, renovates it and sells it for a profit a short time later.

INVESTOPEDIA EXPLAINS 'Flipper'

1. Flippers may hold a stock for only 24-48 hours, and therefore are very susceptible to any immediate downturns or upturns in the market. These sudden market shifts can make or break a day trader, whereas a long-term investor could much more easily weather the ups and downs of stormy stocks.

2. Real estate flippers are battling a whole minefield of problems in order to make some big cash. Problems with borrowing, insurance, renovations, inspections, market conditions and more can make a huge dent in the tens of thousands of dollars they could make on one flip.

VIDEO

Loading the player...
RELATED TERMS
  1. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  2. Floor Trader - FT

    An exchange member who executes transactions from the floor of ...
  3. In And Out

    A trading strategy in which shares of a single security are bought ...
  4. Friendly Hands

    A nickname for investors in an IPO who will likely hold onto ...
  5. Sweat Equity

    Contribution to a project or enterprise in the form of effort ...
  6. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
RELATED FAQS
  1. What is foreclosure investing?

    Foreclosure investing involves the purchase of houses that are somewhere in the process of being confiscated by lenders due ... Read Full Answer >>
  2. What kind of assets can be traded on a secondary market?

    Virtually all types of financial assets and investing instruments are traded on secondary markets, including stocks, bonds, ... Read Full Answer >>
  3. How are American Depository Receipts (ADRs) exchanged?

    American depositary receipts (ADRs) are bought and sold on regular U.S. stock exchanges, either in the over-the-counter market ... Read Full Answer >>
  4. What is the difference between adjusted and regular funds from operations?

    While regular funds from operations measures the cash flow generated by the operations of a real estate investment trust ... Read Full Answer >>
  5. Why would a company decide to utilize H-shares over A-shares in its IPO?

    A company would decide to utilize H shares over A shares in its initial public offering (IPO) if that company believes it ... Read Full Answer >>
  6. How do I place a buy limit order if I want to buy a stock during an initial public ...

    During an initial public offering, or IPO, a trader may place a buy limit order by choosing "Buy" and "Limit" in the order ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Foreclosure Opens Doors For Real Estate Investors

    Learn how to spot hot properties that you can turn around for a profit.
  2. Home & Auto

    5 Mistakes That Make House Flipping A Flop

    If you're just looking to get rich quick, you could end up in the poorhouse.
  3. Personal Finance

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  4. Home & Auto

    4 Types Of Home Renovation: Which Ones Boost Value?

    You think your updated house looks great, but potential buyers may not feel the same way.
  5. Home & Auto

    Flipping Houses: Is It Better Than Buy and Hold?

    Real estate investors can flip a property or use it for cash flow. Find out which will work in your neck of the woods.
  6. Home & Auto

    Top 5 Must-Haves For Flipping Houses

    Not everyone can make money in this field. Find out what you need before you buy in.
  7. Stock Analysis

    Will Jet.com Revolutionize Shopping?

    Jet.com has arrived and will look to steal market share from Amazon over the next several years. Will it be successful?
  8. Mutual Funds & ETFs

    Top 3 ETFs For Investing in Brazil

    Discover information and analysis of some of the most popular and best performing exchange-traded funds that offer investors exposure to Brazil.
  9. Entrepreneurship

    How Grant Cardone Built a $350M Real Estate Empire

    Sales trainer Grant Cardone built his multimillion-dollar real estate empire without raising external capital from anyone beyond his close family members, who own less than 2% of the Cardone ...
  10. Trading Strategies

    Will Higher Interest Rates Hurt Trading Activities?

    Do higher interest rates lead to less trading and lower interest rates lead to more trading? Investopedia debunks common myths around interest rates and trading.

You May Also Like

Hot Definitions
  1. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  2. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  3. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  4. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  5. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
  6. Himalayan Option

    An exotic equity option belonging to a class known as mountain range options. Himalayan options are based on a basket of ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!