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How a company will lose when its share price go down? |
when someone buy shares from a company (for ex. 100'000.00$ worth of shares) , so the company will receive about 100'000.00$ .... let's suppose the company kept that amount in bank !.... Actually when you buy stock you aren't buying it from the company you're buying it from another investor. The company only makes money when it sells off the stock initially (an initial public offering) and then it just keeps the money and uses it to fund expansion. A company is not directly affected by its stock price, though the employees of the company may be. |
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