Series 50: Flipping

Taken from our Series 50 Online Guide

Flipping

Flipping is the practice of immediately reselling bonds that were bought in a primary offering with the intention of profiting from a large markup.

In cases of flipping, underwriters sell blocks of municipal bonds to an investor who then immediately sells the bonds to retail investors for a significant markup. Because the bonds are sold at a higher price, this reduces the current yield and YTM on the bonds. The fact that t

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