Investopedia

Continue to Site »

Friendly Hands

Filed Under »
Dictionary Says

Definition of 'Friendly Hands'

A nickname for investors in an IPO who will likely hold onto the security for a long time. Friendly hands alludes to IPO subscribers who are not interested in purchasing the new issue with the hopes of quickly flipping the shares for a quick profit. Long term investment in IPOs tends to reduce stock volatility, thus reducing the chances of a sudden crash in the stock's value.
Investopedia Says

Investopedia explains 'Friendly Hands'

The opposite of a friendly hands investor would be a flipper, who is more interested in profiting from a hot IPO issue by selling it almost immediately after purchase. In contrast to a flipper, a friendly hand generally tends to look for stable, long-term profits instead of the quick fix. Although they both play very different roles in an IPO placement, both flippers and friendly hands play an important role in the marketplace.

Articles Of Interest

  1.

    5 Tips For Investing In IPOs

    Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters.

  2. How To Interpret A Company's Prospectus

    Learn to decipher the secret language of the prospectus - it can tell you a lot about a company's future.

  3. IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.

  4. Pinnacle Foods Gains 11% In IPO Debut--Now What?

    Blackstone Group brought Pinnacle Foods (NYSE:PF) to market March 28. The maker of Vlasic pickles and other well known brands saw its stock jump more than 12% in its first day of trading. Should ...

  5. Investing In IPO ETFs

    Learn the history, rules and risks of investing in IPO exchange-traded funds.

  6. Buy or Sell: Norwegian Cruise Line's IPO Up 31% On First Day Of Trading

    NCLH gained 31% on November 17, its first day of trading. Does this mean it is a buy, sell or hold?

  7. Reverse Takeover

    Learn more about this type of takeover and how companies use it to avoid IPOs.

  8. The Fundamental Mechanics Of Investing

    Here's a story that demonstrates why stocks and bonds were created and how they are valued.

  9. How are share prices set?

    When a company goes public though an initial public offering (IPO), an investment bank evaluates the company's current and projected performance and health to determine the value of the IPO for ...

  10. Cashing In On The Venture Capital Cycle

    Find out how VC firms make the market go round, and round and round.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center