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
The company is primarily beholden to its owners, aka its shareholders.
The shareholders primary interest in the company, and thus their ultimate metric of success, is the value of their shares.
Therefore, to the people that matter, success = high stock price.
Keep in mind that higher level managers and executives and other major shot callers generally get a lot of their compensation in the form of stock (options). So it’s not just random investors thay might occasionally get involved in a vote who are motivated by stock price, its the people making decisions year round.
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