Eli5: Why do companies care about their stock prices?

3.11K 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

Because people who own or buy stocks don’t want to lose money. So stock prices matters. If the stock price falls too low but it’s a valuable company, it can be targeted for a takeover.

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