eli5 why do companies with billions in the bank care about stock prices. Wouldn’t they be financially fine if the stock lost money?
In: 103
If the stock loses value, the investors who own the stock get grumpy. If enough of them get grumpy enough, they complain to the board of directors. Often when that happens, the CEO and other members of the leadership team get fired. Nobody wants to get fired. Therefore the leadership team cares very much about the stock price.
Latest Answers