Brokerage firms encourage the practice of flipping IPO securities.

Question

Quizplus · Accepted Answer

Brokerage firms generally discourage the practice of flipping IPO securities because it can undermine the market stability and the relationship with the companies whose shares are being offered. Flipping, or selling newly acquired shares quickly after an IPO for a profit, can lead to increased volatility and can be seen as detrimental to long-term investors and the companies going public.

Brokerage Firms Encourage the Practice of Flipping IPO Securities