Why Do Companies Care About Their Stock Price?



Next video:
Loading the player...

There are several reasons a company may care about keeping a high and rising price.

Related Articles
  1. Financial Advisor

    Advising FAs: Explaining Long-term Care Insurance to Clients

    As our life spans are extended, our family structures change and medical care improves, the need for long-term care (LTC) will continue to increase.
  2. Retirement

    What Long-Term Care Insurance Protects Against

    Because long-term care can be so expensive, not to mention labor-intensive, long-term care insurance exists to protect against exhausting your personal assets or burdening your loved ones. In ...
  3. Financial Advisor

    How to Prod Clients Into Talking Long-Term Care

    Long-term care is a difficult subject to broach, but it's a reality for millions of Americans. Here's how to bring it up tactfully with clients.
  4. Financial Advisor

    Does the Middle-Class Need LTC Insurance?

    Long-term care insurance is as expensive as it is necessary for many people, but is it right for all financial advisor clients?
  5. Markets

    The Debt Report: The Health Care Sector

    Discover how the health care industry's largest companies have greatly increased their debt exposure since the financial crisis, and why this trend matters.
  6. Financial Advisor

    Why Long Term Care Isn’t a Client Priority

    Long term care is a difficult subject to broach with clients, but advisors need to do it. Here are some tips on how to tackle managed care for retirees.
  7. Retirement

    Your Complete Guide to Long-Term Care Insurance

    Learn everything you need to know about this critical insurance: what it is, what it covers, when to buy it, the cost, which companies offer it and more.
  8. Personal Finance

    The 4 Best Alternatives to Long-Term Care Insurance

    Understand what long-term care insurance is and the types of people who need this coverage. Learn about four alternatives to long-term care insurance.
  9. Financial Advisor

    Long-Term Care Policies: Why They're Worth It

    Long-term care insurance can be a godsend for those who need it for an extended period of time. Read on for more about this long-term care option.
  10. Personal Finance

    Long-Term Care Insurance: Who Needs It?

    No one is immune to the possibility of one day needing long-term care - and the costs can deplete a life savings.
Hot Definitions
  1. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  2. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  4. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  5. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
  6. Real Rate Of Return

    The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other ...
Trading Center