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Distance Education & Online Degrees - The Business of Distance Education








By Carrie
Reeder


The business of distance learning – online education courses offered by
colleges, universities, and trade schools – is an up and down affair. On the
surface it would seem that distance learning providers are doing quite well, but
according to a May 12, 2005 report at the Motley Fool financial website, the
stocks of companies like eCollege and SkillSoft are earning less than honorable
marks in the market. There is no plausible explanation for the drop in
eCollege’s stock price from $18.18 per share to $9.07 as of the date of the
report since the distance learning company’s quarterly report noted a net
increase in first-quarter revenue of 21% compared to the first-quarter of
2004.


Perhaps it is the still sketchy reputation of distance learning and online
education that is causing investors to be shy about the companies. Internet
based companies of all kinds with the exception of giants like eBay and Amazon
have traditionally had rocky rides ever since the dot com debacle of the late
nineties. Presumably, those trends will soon change.


Distance learning is growing every day. Because online education offers
opportunities in adult education unlike any that have existed before, the
business itself is growing by leaps and bounds. In 2001, the British market
research firm IDC made the prediction that the worldwide distance learning and
online education market would be worth $23billion by 2004. While numbers of that
magnitude have yet to be attained, they are much more realistic for the coming
years than they were four years ago.


Distance Learning is not just for adults anymore. Part of the growth of
distance learning as an industry is stemmed by the fact that, though it was
started as an easy alternative to night school and physical adult education
classes, many high school and elementary school children are joining the
distance learning glee club and receiving their primary education online. By
1999 more than a million American children were being home schooled; taught by
their parents at home rather than in a traditional school. The numbers have
grown since then and with online education and distance learning options
becoming available, more are sure to join the ranks in the coming years.


What this means for investors is that the distance learning business is far
from flunking and the decreasing stock prices of online education providers
today could be indicative of a bull market after graduation.


To view our recommended sources for online education and degrees, visit us
here target=_new>Recommended Sources For Online Education.


Carrie Reeder is the owner of target=_new>eZerk, an informational website with articles and the latest
news on various topics. Visit eZerk for more information about online education
and degrees.


Article Source: href="http://ezinearticles.com">http://EzineArticles.com/

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