Tuesday, November 27, 2018

NEWBIE QUESTION : What's the relationship between a corporation and its stock prices?

So I understand that when a corporation becomes public, its stocks are available in the market. But I don't get why it's important for the stock prices to rise. Why can't the corporation function normally when the price of its stocks fall? Well I suppose it's the other way around; when business isn't going well which causes a fall in confidence, leading to stock prices falling as demand falls. But still, why does it matter? How do stock prices affect how well the corporation is running? It's just a question I've had in my head that I can't answer.



Submitted November 27, 2018 at 07:57AM by weihanlow https://ift.tt/2r932Ww

No comments:

Post a Comment