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

Ask an Expert

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

Write your message here..

Related Questions

Finance functions, Finance Functions The functions of Financial Manage... Finance Functions The functions of Financial Manager can broadly be split into two:  The Managerial Functions and The Routine functions. Managerial Finance Functions

Example of eoq assumptions, Example of EOQ Assumptions ABC Ltd require... Example of EOQ Assumptions ABC Ltd requires 2,000 units of a component in its manufacturing method in the coming year that costs of Sh.50 each. The items are obtainable locall

Income statement-balance sheet and cash flow, Looking at the income stateme... Looking at the income statement, balance sheet and cash flow statement of the company and relating it with the non financial factors, I have the important observations as below:-

Market segmentation theory, Market Segmentation Theory This theory sta... Market Segmentation Theory This theory states as the main investors lenders and borrowers are confined to a particular segment of the market and will not change even whether t

E-Commerce, Ask question #Minimu• 1.What is an Auction? E Bay is a market l... Ask question #Minimu• 1.What is an Auction? E Bay is a market leader in online auction sites. Discuss SWOT for E bay using your web sources?. 2.Why so many entrepreneurs drawn to

Comparison between modern and traditional methods, Comparison between Moder... Comparison between Modern and Traditional Methods Both modern and traditional methods will indicate or show strong weaknesses which like a company cannot use either to choose

Risk-free interest rate-corporate tax rate, XYZ is considering a capital re... XYZ is considering a capital restructuring to allow $300 million in debt. Currently, XYZ is an all-equity firm with earnings before interest and taxes of $260 million. Assume unlev

List three career opportunities in the field of finance, List and describe ... List and describe the three career opportunities in the field of finance. Finance has three major career paths that are financial management, financial markets and institutions

Wacc based on market value weights, Sapp Trucking's balance sheet shows a t... Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a marke

Explain the framework put forward by the basel committee, Question 1: a... Question 1: a) Explain the framework put forward by the Basel Committee to ensure that banks and supervisors give appropriate attention to the second (supervisory review) and