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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They shouldn’t. The only time the board of directors is required to do what is best for the shareholders is during a buyout. Of course this isn’t what happens the largest shareholders want board members that represent only their interests. So companies chase only what makes large shareholders happy, and shareholders want the stock to be worth more than they paid.
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