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Simple English definitions for legal terms
flip
Read a random definition: Semiconductor Chip Protection Act
A quick definition of flip:
Term: FLIP
Definition: Flip means to buy something like stocks or property and then sell it quickly to make a profit. It can also mean to change your mind and help the police by telling them what you know about a crime.
A more thorough explanation:
Definition: To buy and quickly sell securities or real estate in order to make a profit. It can also refer to refinancing consumer loans or turning state's evidence.
- John bought a house for $100,000 and sold it a week later for $120,000. He flipped the house for a $20,000 profit.
- Samantha decided to flip some stocks, buying them in the morning and selling them in the afternoon for a quick profit.
- After being arrested for a crime, the suspect agreed to turn state's evidence and testify against their accomplices in exchange for a lighter sentence.
The examples illustrate the different ways the term "flip" can be used. In the first two examples, "flip" refers to buying and selling assets quickly for a profit. In the third example, "flip" is used in the context of turning state's evidence, which means cooperating with prosecutors and testifying against other criminal defendants in exchange for a reduced sentence.