20 January 2015
We are selling and buying securities in the market.prices will go up and down on daily basis.here my doubt is what benefit company will get.?
22 January 2015
If the stock price consistently underperforms shareholders' expectations, the shareholders will be unhappy with management and look for changes.
favorable market performance is useful for a company seeking additional equity & debt financing. If there is demand, a company can always sell more shares to the public to raise money.
If performance of its stock is ignored, the life of the company and its management may be threatened with adverse consequences, such as the unhappiness of individual investors and future difficulties in raising capital.
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