Wednesday, November 20, 2013

Chegg's Shares Down After IPO Priced Above Expectations

Corporate  organizations seek extra capital for expansion through IPOS. Pricing of stock is critical in For a  successful debate in the U.S. stock market. Most companies overprice the stock at the entry level, As the case with Chegg .

 However, the performance of  its stock was all low due to overpricing and lack of Investor awareness. The operating state of the economy, or the environment has been also tight hence low The performance of the company’s stock just like other players.

Poor timing also accounts for the Underperformance. High costs of marketing and high operating costs also occasioned the significant Losses registered by Chegg at the end of the trading period.

 Aggressive marketing, and horizontal growth Explains the increase in  the general sales though the costs incurred to steer this growth and expansion Caused the losses  at the close of the business.

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