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I'll repeat myself. If I own stock in a company whose executives do not work to keep the stock price up or even increasing, I will replace those executives wit
by anamax 4y ago
I'll repeat myself.
If I own stock in a company whose executives do not work to keep the stock price up or even increasing, I will replace those executives with executives who will work to keep the stock price up/increasing. (Corollary - I will not buy stock in a company whose executives are unconcerned with stock price. That unwillingness means that folks who own stock and might want to sell it to folks like me will "encourage" executives to make that possible.)
Is it really hard to understand that stockholders care about stock prices and that they will "encourage" the company to maintain/increase the value of their investment?
Would you buy stock in a company that didn't try to maintain/increase the stock price? Why?
This has nothing to do with bank financing or further stock sales by the company, although those can also be factors.