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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The company is run by the board, and the board serves at the behest of the shareholders.
Because of this the board will almost always do what’s in the best interest of the shareholders, not the employees, not the customers.
Since the shareholders own stock, the value of that stock directly translates to how much wealth the stock holders own.
A stock price dropping $1 can translate to millions of dollars lost in value for shareholder.
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