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
Stock is a currency of its own, and a company can dilute their existing shares by issuing new ones. It is very common for mergers and acquisitions to be stock heavy transactions, in which case the buyer wants to issue the fewest number of new shares to complete the transaction.
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