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)
“We gave ‘em wings to fly and they rained death on us. We gave ‘em a voice to be heard around the world and they preach hatred to poison the minds of nations. Even the medicine we gave them to ease their pain is turned into a vice to enslave half mankind for the profit of a few. Ah, Janet, dear, don’t you see? Every gift that science has given them has been twisted into a thing of hate and greed.”
—Karl Brown (1897–1990)