Aggarwal, R. "Allocation of Initial Public Offering and Flipping Activity." Journal of Financial Economics 68.1 (2003): 111-135.
There is a general perception that the large trading volume in initial public offerings is mostly due to “flippers” that are allocated shares in the offering and immediately resell them. On average, however, flipping accounts for only 19% of trading volume and 15% of shares offered during the first two days of trading. Institutions do more flipping than retail customers and hot IPOs are flipped much more than cold IPOs. Institutions do not quickly flip cold IPOs to take advantage of price support activities by the underwriter. Explicit penalty bids are rarely assessed against flippers.
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