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

One tangible reason is that the stock price is instrumental in setting the price of a hostile takeover. They’re a bunch of other reasons but I didn’t see this one mentioned.

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