Companies make money by selling products and services. If they sell well, they get profit. Bang, end of story, right? Where does stock price come in and why does it matter?
I do understand that during IPO the company basically sells stock, instead of product and services, and gets profit from that. But later on, when stock is just traded between people outside of company, why does its price matter **to the company?**
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Imagine you and your friends were given 1 round metal disc today – if you go to the candy shop, you can buy 50 today but you’re also told, that it may also get you 100 on certain days and just 10 on other.
You’d naturally expect that the disc should get you more than 50 candies at any day in future. So is the case with Company Execs.
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