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)
“For the profit of travel: in the first place, you get rid of a few prejudices.... The prejudiced against color finds several hundred millions of people of all shades of color, and all degrees of intellect, rank, and social worth, generals, judges, priests, and kings, and learns to give up his foolish prejudice.”
—Herman Melville (1819–1891)