Eli5: Why do companies care about their stock prices?

1.50K 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

[Investorpedia has an article about just this.](https://www.investopedia.com/investing/why-do-companies-care-about-their-stock-prices/)

But the ELI5 is perception in the company. Having a healthy stock price signals investor confidence, making it easier to raise more money and avoid competitors engaging in a hostile take over of the company.

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