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.


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.

  1. Material Insider Information

    Material information, about certain aspects of a company, that ...
  2. Insider Buying

    The purchase of shares of stock in a corporation by someone who ...
  3. Insider

    A director or senior officer of a company, as well as any person ...
  4. Inside Market

    The inside market is the spread between the highest bid price ...
  5. Short-Swing Profit Rule

    A Securities & Exchange Commission regulation that requires ...
  6. Material News

    News released by a company that might affect the value of its ...
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