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

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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.


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