Eli5: Why do companies care about their stock prices?

3.07K 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

The company doesn’t sell all of the stock. If they ever want to raise more money some day, they will sell some more stock, and they will care about how much money they can get for that stock.

They care about its price for the same reason anybody cares about the price of something they own a lot of.

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