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 stock price can make it more expensive for the company to borrow money if it is too low, it also matters for executives since part of their bonus may be in discounted company shares.
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