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
Because the people who bought the company’s shares now have a financial stake in the company’s stock price.
If you invest $5000 in a company, you *absolutely* do not want to see the share price drop. And if the people running the company can’t keep the stock price up, then you as a shareholder can vote to sack them and replace them with people who can.
Basically, if the CEO doesn’t keep the stock price up, they don’t keep their job
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