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
Owning stock means you own a portion of the company. The stockholders are entitled to any profits (dividends) the company makes, and choose a CEO to run the company so as to maximize long term profits. Stockholders can also sell their shares of the company, and the amount they will get for their shares is directly connected to the amount of profit that company is expected to produce.
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