Eli5: Why do companies care about their stock prices?

1.55K viewsEconomicsOther

From my little understanding, company’s issues stocks to raise money. So once the company’s sell those stocks, why does it stock prices matter to them?

In: Economics

37 Answers

Anonymous 0 Comments

Simple summary. Stock gives me part ownership. If my 1% of stock is worth $1 today, I would love if that same stock would be worth $10 a year from now. Company stock goes up which means that my ownership share is worth more.

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