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.

BREAKING DOWN '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.

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