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
Every share is owned by someone. People that own things certainly like the things they own to be worth more.
When you have a valuable thing, it is only valuable if *someone else wants to buy it from you*.
Whoever holds the most shares generally has the most power in a company, and the most interest in the share price.
Now imagine it just stays the same in value, and has a history of staying the same value. Why would *you* trade a dollar for something that is equal value and is less useful than a dollar? No, you’re only interested in buying shares if it has a benefit (you can sell it in the future).
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