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)
“Phlebas the Phoenician, a fortnight dead,
Forgot the cry of gulls, and the deep sea swell
And the profit and loss.
A current under sea
Picked his bones in whispers. As he rose and fell
He passed the stages of his age and youth
Entering the whirlpool.”
—T.S. (Thomas Stearns)