How do flippers work in IPOs?
Find out what Flippers are during the launch of IPOs, and see how these investors make a quick profit from this transaction In the financial world there are many different strategies, investments and activities. And one of the most "famous" strategies in this market is the actions of flippers, who are investors who participate in IPOs (Initial Public Offerings). IPOs are the process by which a private company offers its shares for the first time, allowing outside investors to buy a stake in the company. To act as a flipper, you need a lot of knowledge and study. Because flippers aim to buy shares at a low price in the initial phase and sell them quickly after the initial appreciation on the secondary market. In other words, to be successful you need to be very attentive to market movements. Firstly, we need to understand that in order to take part in an IPO, you need to have an account with a stockbroker, make a reservation request for the amount of money you would like to invest and how much you would pay for each share (investors are given an average amount that the company will be going public at per share). After this process, on the day stipulated by the commission, the value set per share and the number of shares that each individual investor will be able to buy will be announced. When a company goes public, all investors are enthusiastic about its proposals and short, medium and long-term prospects. If it's a company with vision, in a promising market niche, with growing earnings and profitability and excellent management, the number of shares traded on the day of the Public Offering is very large and tends to generate a very high valuation on the same day. As a result, investors who have reserved shares [...]
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