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

Essentially if you multiply the number of stocks by the stock price you get the value of the company. If the company value is going down then that’s obviously not a good thing.

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