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

In addition to the answers regarding acting in the interest of shareholders (which is a fiduciary obligation), companies often own some of their own stock. This means they can sell it or borrow against it to raise additional money as needed.

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