Stag profit

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Stag profit is a market term used to describe a situation before and immediately after a companies IPO. A stag is a party or individual who subscribes to an IPO 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.

For example, one might expect a certain I.T. company to do particularly well and purchase a large volume of their stock or shares before flotation on the stock market. Once the price of the shares has risen to a satisfactory level the person will choose to sell their shares and make a stag profit.

[edit] See also

• Flipping
• Lock up period
• Bear market
• Bull market