Legal Definitions - flip

Definition: To buy and quickly sell securities or real estatein 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.