What is a Flipper
A flipper is an investor who buys a stock, often an IPO, in order sell it for a quick profit, or who buys and sells homes for quick profits.
BREAKING DOWN Flipper
Stock flippers may hold a stock for as little as 24-48 hours, and they therefore are exposed to short-term upturns and downturns in the market. Unlike long-term investors, who typically ignore short-term ups and downs in the market, these short-term investors depend on these sudden market shifts to make their profits. With IPOs, it is institutional investors who are most often given the chance to purchase shares, and often they engage in flipping.
Real estate flippers often buy rundown homes at low prices and renovate them in order to sell them at much higher prices. Typically flippers face a host of challenges. These include problems with borrowing, insurance, renovations, inspections and market conditions. All of these present hazards that can make profitability a challenge unless skillfully managed.
Flipping, whether in stocks or real estate, is highly speculative.