I had a question since long, but didn’t know whom to ask…


When a company issues IPO, and when it's fully bought, the company get the money and the investors get thier shares. And when it's traded in the stock market, it's between investors and they decided the value of the share which is traded, classic demand and supply.

But i get confused is how does the stock market price change for a company's share affect the company itself, as they got their money at IPO and the shares are traded among traders/investors, and no money is going to the company, I understand if the goodwill of a company is be affected and the price goes down, but how does it affect the company financially?


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