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.


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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.

  1. Day Trader

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  2. Floor Trader - FT

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  3. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  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. In And Out

    A trading strategy in which shares of a single security are bought ...
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  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. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  3. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  4. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
  5. How are American Depository Receipts (ADRs) priced?

    The price of an American depositary receipt (ADR) is determined by the bank or other financial institution that issues it. ... Read Full Answer >>
  6. 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 >>

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