Eli5: Why do companies care about their stock prices?

1.55K 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

In addition to the correct answers already given here, many companies use equity as incentives for retention and hiring. If the stock price is not increasing this will be less effective.

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