Why should care about the market price

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Problem 1: A corporation only gets money in exchange for stock when they do an initial public offering (IPO), or a secondary offering. But, corporate leadership keeps a very close eye on the market price of their stock at all times and is always a major consideration when determining their compensation. If their company isn't getting any money for the shares trading on the secondary market, why should they care about their market price?

Reference no: EM132951548

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