Eli5: Why do companies care about their stock prices?

1.54K 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

Because it affects your ability to borrow money at favorable rates. Borrowing 1b is much easier when your market cap is high 100b and share price is high.

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