underpricing
Selling too cheaply
Underpricing is setting a price below what something is worth or what the market would bear.
Companies may underprice products to gain market share or drive out competitors.
In finance, underpricing often refers to IPO shares offered below their trading value: The stock jumped 40% on day one—classic underpricing.
The practice can be strategic or a miscalculation.
Reduced price offered
- markdownReduction in retail price
- clearancePermitted passage or approval
- saleExchange for payment
- dealAgreement or distribution
steal · reduced · cut-rate · budget-friendly · low-cost · affordable · inexpensive · cheap
Rating below actual worth
- underestimateJudge too low
- miscalculationError in estimation
- underassessmentValuing below actual worth
- misjudgmentFaulty evaluation of something
inefficiency · discounting · oversight · inaccuracy · market correction · book value
Disposing carelessly or abruptly
- lowballingOffering far less than worth
- cutthroatViciously competitive or murderous
- market disruptionFundamental shift in industry dynamics
- loss leaderDeliberately unprofitable merchandise
market penetration · competitive edge · market positioning · squeeze out · underbidding · anticompetitive
First stock market sale
- prospectusFormal investment disclosure document
- roadshowTraveling promotional presentation
- going publicLaunching a stock offering
- listingRecorded item in catalog
flotation · allocation · institutional investors · retail investors · aftermarket
discount
Reduced price offered
deal · steal · reduced · cut-rate · budget-friendly · low-cost · affordable · inexpensive · cheap · savings
undervaluation
Rating below actual worth
- underestimateJudge too low
- miscalculationError in estimation
- underassessmentValuing below actual worth
misjudgment · inefficiency · discounting · oversight · inaccuracy · market correction · book value
dumping
Disposing carelessly or abruptly
- lowballingOffering far less than worth
- cutthroatViciously competitive or murderous
- market disruptionFundamental shift in industry dynamics
loss leader · market penetration · competitive edge · market positioning · squeeze out · underbidding · anticompetitive
initial public offering
First stock market sale
- prospectusFormal investment disclosure document
- roadshowTraveling promotional presentation
- going publicLaunching a stock offering
listing · flotation · allocation · institutional investors · retail investors · aftermarket
- bargainsbargain, bargain hunting, discount store, coupon, rebate
- Business Failuresbankruptcy, mismanagement, fraud, embezzlement, overexpansion
underpricingoverpricing
Charging beyond worth
overcharging · price gouging · gouging · inflating · overvaluing
price, prices, priced, pricing, overpriced, underprice, underpriced, overpricing, mispriced