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. Penny Stock

    A stock that trades at a relatively low price and market capitalization, ...
  2. Bucketing

    A situation where, in an attempt to make a short-term profit, ...
  3. Pump And Dump

    A scheme that attempts to boost the price of a stock through ...
  4. Boiler Room

    A place where high-pressure salespeople use banks of telephones ...
  5. Cumis Counsel

    Legal counsel chosen by the insured when the insurer has a conflict ...
  6. TSA PreCheck

    This program allows travelers deemed low-risk by the Transportation ...
Related Articles
  1. Investing Basics

    7 Investing Mistakes And How To Avoid Them

    No investor is flawless. Here are some common investing fallacies and a step-by-step guide on how to avoid them.
  2. Options & Futures

    Top 7 Most Common Financial Mistakes

    Choose fortune over disaster by avoiding these money traps.
  3. Options & Futures

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  4. Economics

    The Impact Of Ending The US Embargo On Cuba

    Many argue that ending the US embargo on Cuba will not only make US consumers happy, but also help the US economy and bring more freedoms to Cuba.
  5. Economics

    Popular Places Where U.S. Citizens Need A Visa

    A U.S. passport will get you into many countries, but not everywhere. Here's how to visit five of the most popular destinations that require visas.
  6. Economics

    Are You the Victim of Unfair Labor Practices?

    If you are a union member, a union leader, or a manager at a company with an established union, you should understand unfair labor practices.
  7. Investing

    How The SEC Tracks Insider Trading

    We look at how the SEC tracks and tries to stop insider trading - a seemingly impossible task.
  8. Investing News

    What Affirmative Action Means for Regular Business

    What Affirmative Action means for your businesses today.
  9. Economics

    How To Pass The U.S. Citizenship Test

    The U.S. citizenship test includes a civics section some states may require high school grads to master. Here's what an immigrant must know to pass it.
  10. Personal Finance

    How Minimum Wage Impacts Unemployment

    We explain how the minimum wage affects unemployment, public assistance, and the economy overall.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center