5 Reasons Why Companies Care About Their Stock Prices

AAA

Typically, companies issue shares to the public and receive their money up front. Investors then either make profits or suffer losses depending on the performance of the stock. The original company that issues the stock does not participate in any profits or losses resulting from these transactions because this company has no vested monetary interest. This is what confuses many people. Why then does a company, or more specifically its management, care about a stock's performance in the secondary market when this company has already received its money in the IPO? Read on to find out.

Related Articles
  1. Term

    Protected Cell Company (PCC)

  2. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

  3. Investing Basics

    The Basics Of Value Chain Analysis

  4. Investing Basics

    Top Tools for ERP Enterprise Resource Planning

  5. Investing Basics

    Analysis of Companies with high goodwill

  6. Investing

    What's the difference between legal defalcation and illegal defalcation?

  7. Investing News

    Starbucks As An Example Of The Value Chain Model

Trading Center