Eli5: Why do companies care about their stock prices?

1.53K 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

Many rich employees and execs also depend their “salary” on stock. A HR manager at my old startup networth is 3.7 mil because she gets stock, but her salary is $0. She’ll sell the stocks at the cost of 20% tax, avoiding the 24%+ tax bracket. It’s how most execs get rich while avoiding high tax too.

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