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
You own a company. You hire a manager to run it. You probably want your manager to run it in a way that makes the company more valuable than it was before. You’d probably be upset if this manager ran it into the ground. Similarly, CEO’s and other managers are hired by stockholders (owners of the company) through the board of directors. Stockholders want management to run the company in a way that makes it more valuable over time
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