3 ms·

… Do they? After an IPO, how is the glorified trading card game of stocks actually helping the companies themselves?

• shard 6y ago
  By making stock grants valuable and thus aligning the incentives of the employees with the company?
• kevinventullo 6y ago
  In many cases, shareholders are represented by a board of directors, to whom the CEO is beholden. Also, executives often see much of their compensation via equity in some form.
• yuliyp 6y ago
  Companies can issue stock (whether through employee grants or secondary offerings). They can also buy other companies with stock.
  • Nasrudith 6y ago
    Plus the value can effectively act as a form of collateral for loans explicitly or otherwise.