Flipping

Finance allah shmoop What is ah hot issue All right

Well it's one that has demanded more than it is

supplied One that is loved more than it is hated

One that is hot more thin it's gold Well the

most common hot issue in the press You read about

all the time Yeah It's an aipo that everybody wants

Why Well it's basically free money to the investors Price

talk has been ten to twelve dollars a share And

well then it looks like it's moved twelve to fifteen

and out price doc's fifteen to eighteen a share And

traders are mumbling that the first actual traded print will

be something like forty dollars a share So anyone who

buys at that eighteen dollars price or really any price

upto thirty thirty two thirty five something like that Well

they'll make a massive return for one day's work just

flipping their stock Tio you no longer term holders I

think about the real estate show where they flip houses

you know Well they have to do a whole lot

of work to flip a house on stocks are a

lot easier Well why do hot issues even happen Well

often banks purposely underprice i pose to quote pay the

street unquote for taking risk and buying that aipo handsomely

like they price it low Lots of people are going

to buy it have a low cost basis and remember

it fondly Well cos generally play along instead of selling

say thirty forty fifty percent of themselves to the public

in there i po well they only sell ten percent

and later on they'll sell more when the stock is

popped and traded and settled and has a buying public

and all the other good things that go with it

so and only a tiny amount of shares out there

trading even modest demand can drive prices to the sky

and this phenomenon happens Ah lot ebay snap facebook A

whole bunch of others essentially created hot issues by offering

very tiny fractions of ownership of themselves to the public

in there i po so that the enormous buyer interest

almost guarantees more demand than supply of the security being

sold and hot issues as you guess our great well 00:02:03.51 --> [endTime] until they're not