/biz/ - Business & Finance

>>57535921
Several reasons:
>Share price as a performance indicator: The market value of a company's shares is often seen as a reflection of the company's performance and prospects.
>Capital Raising for Future Growth: Companies often issue additional shares after the initial offering to raise capital for expansion, debt repayment, or other investments. If a company maintains a good relationship with its shareholders and has a strong share price, it can more easily raise capital through secondary offerings.
>Shareholder Rights and Influence: Shareholders, especially those with significant stakes, have various rights, including voting on important company matters such as mergers, acquisitions, and the election of board members.
>Avoiding Takeovers: A strong share price supported by satisfied shareholders can protect a company from hostile takeover attempts.
>Executive Compensation: In many companies, executive compensation is tied to share price performance or other metrics that shareholders care about.
>Market Perception and Brand Value: Public perception is crucial for companies, and a positive relationship with shareholders can enhance a company's brand and market value.
>Access to Resources and Partnerships: A company with a strong share price and shareholder support is more attractive to potential partners, clients, and employees