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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The executives work for the owners of the stock, often are compensated with stock, and get bonuses based on the price of the stock. It’s a crap system for both employees and consumers, but it has made a few well connected people many billions of dollars
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