Tipping

Posted in Finance, Accounting and Economics Terms, Total Reads: 241
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Definition: Tipping

Tipping is a malpractice where sensitive and confidential information is given to individuals or companies, who use it for their own benefit. The confidential information is only meant for company's official purposes.


A tip, in betting is a wager proposed by an outsider why should saw be more educated about that subject than the bookmaker who sets the beginning costs. A tip is not by any means viewed by the tipster as a conviction however that the bookmaker has set a value too low (or too high) from what the genuine danger is.


It is a type of monetary subsidiary, since the tipster himself hazards none he could call his own cash yet offers his master information to others to attempt to beat the bookie.


Tipsters are frequently insiders of a specific game ready to furnish bettors with data not openly accessible. There are different tipsters who give just as respectable results through investigation of generally open data.


For example:

• A company named ABC is trading at Rs 100. Suppose quarterly results are going to be published one week later. And a tipster provides that information to his one friend that the results are very good. So, that friend buys the share of the company at 100 Rs. After one week the results are disclosed and the markets react to it which makes the share price Rs 120. Thus that friend sells it and books profits. In this way an additional tip helped to make profits which is penalised by law.


Advantages:

• The person receiving tips can generate huge profits as the markets are not aware of the hidden information which would react when the information is released in public.


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