Why do companies care about their share price after the IPO?

Question

As I understand it, once a company raises, say $5 billion in an IPO, the shares are sold and they get the money.

The shares are already with the public now. Why is it so important for public companies to grow their share price further every quarter? Why not focus only on the final profit margins?

In: Economics

Answer 1

It’s because the company itself buys the shares as well. This lets them maintain an element of control in the board, but still raise the money.