Why do companies care what the price of their stock is after they have issued it?
I understand why companies issue stock, and I understand the importance of the stock price for buying and selling. But after a company issues stock and receives payment, does the company still derive monetary benefits when the stocks are sold/purchased on the stock market?
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Answer by Robert M
yes they do, often the company's equity is exchanged in lieu of cash to purchase another company, price performance attracts additional investor interest and since you understand why companies issue stock you can also understand why that is important should the company desire a follow on offering.
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