When you buy shares in a company, you are generally buying shares from a shareholder who is willing to sell those shares. For example if you buy $1000 worth of shares of Walmart, that $1000 goes to the seller of those shares not to Walmart. Why then should a company care about its stock price?
A company only gets money from the initial public offering (when it’s shares first go on sale), subsequent buying and selling of shares occurs between investors. Why then do companies put such a strong emphasize on share prices? Here are the reasons why share price is so important to companies:
This great article listed below provides additional reasons why companies care so much about their share price:
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