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

The board of directors and officers of the company have a fiduciary duty to act in the best interest of the shareholders. This means they are legally required to do things that will increase the value of the company (aka the stock price).

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