If the companies have already sold their stock, and it’s being sold on the market, why do they care? Obviously large shareholders that have board spots or the ability to threaten higher ups, they matter. But since a company makes their money from their business, selling this or that, why do they care so much about the stock price? If the company is making money, but if shareholders expect more and the stock price is low? Who cares they’re making money.
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The stock price controls your valuation.
This means that if your stock price is low, you piss off those who own your stock and were hoping for better results, which can cause you to lose control of the company. Even worse if they bought the stock when it was high and you do not give out dividends, as then they just flat-out lost money.
Additionally, what loans you can get can be influenced severely by valuation.
And if your company is doing well but has low stock prices, you can be subjected to a hostile takeover.
If your stock sells at a low price, you are generally going to be seen as less successful and important. This can impact a lot of things negatively.
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