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

RELATED TERMS
  1. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  2. Friendly Hands

    A nickname for investors in an IPO who will likely hold onto ...
  3. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  4. Sweat Equity

    Contribution to a project or enterprise in the form of effort ...
  5. Buy, Strip And Flip

    When a private equity firm buys out a target firm (usually with ...
  6. In And Out

    A trading strategy in which shares of a single security are bought ...
Related Articles
  1. Foreclosure Opens Doors For Real Estate ...
    Home & Auto

    Foreclosure Opens Doors For Real Estate ...

  2. 5 Mistakes That Make House Flipping ...
    Home & Auto

    5 Mistakes That Make House Flipping ...

  3. Avoiding Foreclosure Scams
    Personal Finance

    Avoiding Foreclosure Scams

  4. 4 Types Of Home Renovation: Which Ones ...
    Home & Auto

    4 Types Of Home Renovation: Which Ones ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center