Tip From A Dip

AAA

DEFINITION of 'Tip From A Dip'

Advice from a person who claims to have inside information, such as substantially higher than expected earnings or government approval of corporate mergers, that will materially impact a stock's price but actually doesn't.

INVESTOPEDIA EXPLAINS 'Tip From A Dip'

Sometimes referred to as a "tipster" or "tipper", these people should be avoided at all costs. Government regulations prevent persons with material insider information, such as corporate executives and board members, from disclosing their knowledge to family members, friends, or other persons for the purpose of profiting off virtually guaranteed changes in a stock's price once the news hits the street; anyone with decent insider information is effectively prevented from profiting from it on the open market.

RELATED TERMS
  1. Pump And Dump

    A scheme that attempts to boost the price of a stock through ...
  2. Bucketing

    A situation where, in an attempt to make a short-term profit, ...
  3. Boiler Room

    A place where high-pressure salespeople use banks of telephones ...
  4. Penny Stock

    A stock that trades at a relatively low price and market capitalization, ...
  5. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...
  6. Asset Liquidation Agreement (ALA)

    A contract between the Federal Deposit Insurance Corporation ...
Related Articles
  1. 7 Investing Mistakes And How To Avoid ...
    Investing Basics

    7 Investing Mistakes And How To Avoid ...

  2. Top 7 Most Common Financial Mistakes
    Options & Futures

    Top 7 Most Common Financial Mistakes

  3. Six Economic Reasons For Hong Kong Independence ...
    Economics

    Six Economic Reasons For Hong Kong Independence ...

  4. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. 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 ...
  6. 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 ...
Trading Center