eli5 why do companies with billions in the bank care about stock prices. Wouldn’t they be financially fine if the stock lost money?

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eli5 why do companies with billions in the bank care about stock prices. Wouldn’t they be financially fine if the stock lost money?

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Anonymous 0 Comments

Top level executives perhaps have the bulk of their compensation in stocks so if the stock loses value, whatever you own is now worth less. Plus the more value a stock has, the more capital is in the company.

Think of it like interest on loans, the rate can be very impactful of how expensive or cheap they are.

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