ELi5 : Why does the stock of a company fluctuate when it is involved in a controversy?

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ELi5 : Why does the stock of a company fluctuate when it is involved in a controversy?

In: Economics

9 Answers

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The stock value of a company is a representation of its current and future monetary value.

A controversy lowers that value because people lose trust in the brand, the company may have to pay fines or the government may place restrictions on the company or industry as a whole.

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