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

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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

22 Answers

Anonymous 0 Comments

Everyone who buys a company wants that company to be worth more tomorrow than today.

Every public company has thousands of new owners every single day.

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