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
When companies go public (i.e. issue stocks) they then are essentially owned by the people who own the stocks
The people who own the stocks elect the board of directors who are the people who decide how the company is run. If they don’t run the company for the benefit of the shareholders they’ll get voted out and the shareholders will vote in people who will.
And the shareholders care a lot about stock prices.
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