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/biz/ - Business & Finance

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22281950 No.22281950 [Reply] [Original]

Why do companies care if their stock price is cheap or expensive?

>> No.22282124

Bump

>> No.22282295

stock high = can sell it for more money to do more things

stock low = less money to do things

>> No.22282352

>>22282295
So the company own shares of its own?

>> No.22282369

>>22282352
Yes otherwise not their company

>> No.22282589

>>22281950
The founder and usually all of the high level executives own shares of the company. For example, bezos has about $100 billion worth of amazon stock. So naturally he cares about the stock price.

>> No.22283471

>>22282352
Yes. Shares are literally pieces of a company.

Before going public, a company owns 100 percent of it's shares. When it enters the stock market, it is selling very small percentages of the company to anons like you and me to own.

>> No.22283560

>>22281950
Share purchase plan.

>> No.22284305

>>22283471
well not 100% considering all the private investors who have equity but yeah

>> No.22284317

>>22282352
kek

>> No.22284883

>>22281950
it's a metric of performance. You ever wonder why CEOs get massive bonuses and stock options for increasing share price?

>> No.22284948

>>22284305
I'm just trying to simplify things for anon