The price jump on its initial day of trading, Finance Basics

Following the Initial Public Offering (IPO), the shares of Rosetta Stone, the language instruction company, jumped almost 44 percent from an initial price of $18 to $25.55 in late-morning trade on April 16, 2009.  Please give 2 possible reasons that might describe the price jump on its initial day of trading on the New York Stock Exchange.

Posted Date: 3/16/2013 1:27:02 AM | Location : United States







Related Discussions:- The price jump on its initial day of trading, Assignment Help, Ask Question on The price jump on its initial day of trading, Get Answer, Expert's Help, The price jump on its initial day of trading Discussions

Write discussion on The price jump on its initial day of trading
Your posts are moderated
Related Questions
What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that exists between financial institutions and financial

The scope of supply chain management  Supply chain management includes the determination of suppliers; distributors, distribution channels and warehousing; manufacturing infor

Selection of Remuneration Policy The alternative of a suitable remuneration policy through a company will depend, with another thing, on: 1. Cost: the extent to that the p

Uncertainty and Safety Stocks Usually requirements may not be certain and thus the firm holds safety stock to safeguard stock out cases.The safety stock guards against delays

Overdraft Finance This finance is perfect to need as bridging finance in sense such should be required to solve the company's short term liquidity problems in specific those o

ascascasc

(Interest-rate risk) Philadelphia Electric has many bonds trading on the New York Stock Exchange. Suppose PhilEl''s bonds have identical coupon rates of 9.125% but that one issue m

Two friends, Alan & Tim just graduated from the college. They plan to start their own business, of selling health foods for office workers. They have identified a commercial comple

(i) Find out operating leverage from the following data: Sales                             Rs.50000 Variable Cost               60% Fixed Cost                   Rs.12000

Define benefit plan for the employee participants