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The stock price doesn't effect the company, the company's actions, products and more importantly future prospects influence the stock price. "To me It seems th

The stock price doesn't effect the company, the company's actions, products and more importantly future prospects influence the stock price. "To me It seems that stock has almost no relation with the company anymore. It's a game of buy and sell that is dangerous for a company." Unless the company needs to raise additional capital, which apple does not, the stock price cannot be dangerous for the company. "Apple lost a load of money within hours. I don't think there will ever be a company which is flexible enough to handle changes in value that fast." Apple's shareholder's lost money within hours. The company is still profitable. "So I think this is good for Dell. Breaking free of shareholders who just play the money game." You may be right, private companies can change management incentives to be longer term rather than stock price based which can allow for high risk, long-term strategies. We won't know for several years until the company goes public again (assuming the deal closes).

jtbigwoo 14y ago
Unless the company needs to raise additional capital, which apple does not, the stock price cannot be dangerous for the company. I don't think this is true anymore. Discussion of executive performance these days starts with stock price (and often ends there.) Executives are encouraged by shareholders and the business media to prioritize short-term stock prices over long-term growth. It can be hard to overcome that bias, especially when executive compensation is usually tied very closely to stock price.
- wtvanhest 14y ago
  I was extremely careful with my words, notice that I said "company" not "executives" (similar to OP). It isn't dangerous for executives either but it may influence them to manage earnings or attempt short-term cuts, both activities are usually detected by investors and lead to no price action or lead to negative price action.

jtbigwoo 14y ago

Unless the company needs to raise additional capital, which apple does not, the stock price cannot be dangerous for the company. I don't think this is true anymore. Discussion of executive performance these days starts with stock price (and often ends there.) Executives are encouraged by shareholders and the business media to prioritize short-term stock prices over long-term growth. It can be hard to overcome that bias, especially when executive compensation is usually tied very closely to stock price.

wtvanhest 14y ago
I was extremely careful with my words, notice that I said "company" not "executives" (similar to OP). It isn't dangerous for executives either but it may influence them to manage earnings or attempt short-term cuts, both activities are usually detected by investors and lead to no price action or lead to negative price action.