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When the shares price increases of any company, who will get benifit of this increasing, company or investor? |
when the shares price increases of any company, who will get benifit of this increasing, company or investor both the company and the shareholder benefit from the increase in the value of shares. The share holder benefits the most directly because there position increases in value. The company however benefits in a few different ways. They first benefit from the fact that their share holders are happy. This should matter to the companies because the share holders are the the owners of the company. Therefore this should be the goal of management, to have long term growth in the stock. The second way that the company benefits is that they can now raise money for the company at a cheaper rate. These are the simple ways people benefit from and increase in share price. Anyone who owns stock in the company will benefit. Investors. The company does not directly benefit -- indeed, it will be the cause of the increase, due to increased profitability. Hi, when the shares price increases of a co it will benefit both the company and investor. both as investors return increases if he sells and net worth of company increases as value of shares increases |
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