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

The company can also decide to create new shares and sell them, and at that point the share price is really important. They will.do this so they have more cash for further investemnts into growth or paying bills etc

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