Solution-Why a corporation especially to the management and

Why a corporation especially to the management and board

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Reference no: EM132479942

Point 1: Hypothetically, let us imagine a publicly-funded/ traded a corporation. The corporation just issued a number of common shares at the market (capital market) by going through IPO process with an underwriter's (an investment banker) careful coordination, thus the corporation have received a large sum of capital from public via secondary capital market.

Point 2: Thereafter, then why a corporation "cares" about their per-share price (market price) fluctuates every day, every minute, and every second at the exchange capital market by changing hands of investors ( via NYSE, NASDAQ)?

Question 1: In other words, when the share price goes up, the corporation still Not receive any additional cash for the increased amount, vice versa, when the share price goes down, the corporation do Not have to return cash back to shareholders who already have purchased those shares at a higher price per share.

Question 2: Then, again, why a corporation, especially to the management and board of directors, are so sensitive to and concerned their corporation's share price going up and down everyday?

Reference no: EM132479942

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Why a corporation especially to the management and board

Reference no: EM132479942

Reference no: EM132479942

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