Stag profit is a situation in the stock market before and immediately after a company's Initial public offering (or any new issue of shares). A stag is a party or individual who subscribes to the new issue expecting the price of the stock to rise immediately upon the start of trading. Thus, stag profit is the financial gain accumulated by the party or individual resulting from the value of the shares rising. This term is more popular in the United Kingdom than in the United States. In the US, such investors are usually called flippers, because they get shares in the offering and then immediately turn around and 'flip' or sell them on the first day of trading.
Read more about this topic: Initial Public Offering
Famous quotes containing the words stag and/or profit:
“I don’t want to smoke cigars or go to stag parties, wear jockey shorts or pick up the check.”
—Shelley Winters (b. 1922)
“... when you make it a moral necessity for the young to dabble in all the subjects that the books on the top shelf are written about, you kill two very large birds with one stone: you satisfy precious curiosities, and you make them believe that they know as much about life as people who really know something. If college boys are solemnly advised to listen to lectures on prostitution, they will listen; and who is to blame if some time, in a less moral moment, they profit by their information?”
—Katharine Fullerton Gerould (1879–1944)