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:
“A stag of warrant, a stag, a stag,
A runnable stag, a kingly crop,
Brow, bay and tray and three on top,
A stag, a runnable stag.”
—John Davidson (1857–1909)
“Throughout the history of commercial life nobody has ever quite liked the commission man. His function is too vague, his presence always seems one too many, his profit looks too easy, and even when you admit that he has a necessary function, you feel that this function is, as it were, a personification of something that in an ethical society would not need to exist. If people could deal with one another honestly, they would not need agents.”
—Raymond Chandler (1888–1959)