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
The “company” is not an intelligent being, so it doesn’t care about anything, neither before nor after the IPO. It’s the “owners of the company” that care about it’s value, and when you buy a share from a company you become an “owner of the company”. Of course everyone that buys a share wants its value to go up so it’s important for the “owners of the company” that the value keeps going up
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