> Why should a company care about it's stock price?

Why should a company care about it's stock price?

Posted at: 2014-12-05 
The only way I can think of is if the company wants to sell more of its stock, but otherwise how would it even affect them?

Many employees own the stock in their retirement plan. A houseful of rich employees is much better than a houseful of broke employees. Morale is better. Employee theft and turnover (employees finding better jobs) would be less.

Financial analysts have a better opinion of a company that has an increasing stock price. Customers and creditors feel better about doing business with a "successful" company.

Would you loan Radio Shack any money?

You could have search for this information yourself.

The only way I can think of is if the company wants to sell more of its stock, but otherwise how would it even affect them?