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.

comments powered by Disqus
Related Articles
  1. Adverse Domination
    Term

    Adverse Domination

  2. Entitlement Offer
    Term

    Entitlement Offer

  3. How You Depend On Qualcomm Every Day
    Stock Analysis

    How You Depend On Qualcomm Every Day

  4. Examples Of Using SWOT Analysis To Get Out Of A Thinking Rut
    Investing Basics

    Examples Of Using SWOT Analysis To Get Out Of A Thinking Rut

  5. Benefits Of Doing A SWOT Analysis
    Investing Basics

    Benefits Of Doing A SWOT Analysis

  6. How Does Goodwill Affect Financial Statements?
    Investing Basics

    How Does Goodwill Affect Financial Statements?

  7. Goodwill vs Other Intangible Assets: What's the Difference?
    Investing Basics

    Goodwill vs Other Intangible Assets: What's the Difference?

Trading Center