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Does a company receive money when its stock is traded in the secondary market? How does the company affect the price of its stock? Why is a company concerned about its stock price in the secondary market?

Submitted: 298 days and 12 hours ago.

Category: Finance

Value: $9

Status: CLOSED

No, a company does not receive money when its stock is traded in the market. The company only receives funds in the initial public offering. The company affects the price of its stock by its financial management and performance (increasing revenues, net income, issuing dividends, making strategic investments, reducing debt, etc.), and by keeping the market informed about its accomplishments. The company is concerned about its stock price in the secondary market because it affects the company's ability to issue more stock in the future (if needed to grow), the company's ability to borrow in the future, the net worth of shareholders, the value of stock options (if provided as compensation to key employees), and the company's ability to make acquisitions of other companies.

Accepts:
Expert:	Bill
Pos. Feedback:	100.0 %
Answered:	1/28/2009

Financial Advisor

EA, QPA, CHFC, CEBS, CLU - 29 years experience providing financial advice

298 days and 2 hours ago.

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Hello,
I am sorry but I do not need this answer after all, I researched and found the answer because the first question I asked was answered in 5 minutes, this one took over 5 hrs and I couldnt wait any longer. Thank you.

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Question

Does a company receive money when its stock is traded in the secondary market? How does the company affect the price of its stock? Why is a company concerned about its stock price in the secondary market?

Accepted Answer

Reply

Hello,
I am sorry but I do not need this answer after all, I researched and found the answer because the first question I asked was answered in 5 minutes, this one took over 5 hrs and I couldnt wait any longer. Thank you.

Finance

Have your own Finance question?

Related Finance Topics:

Question

Does a company receive money when its stock is traded in the secondary market? How does the company affect the price of its stock? Why is a company concerned about its stock price in the secondary market?

Accepted Answer

Reply

Hello, I am sorry but I do not need this answer after all, I researched and found the answer because the first question I asked was answered in 5 minutes, this one took over 5 hrs and I couldnt wait any longer. Thank you.

Related Finance Questions

Hello,
I am sorry but I do not need this answer after all, I researched and found the answer because the first question I asked was answered in 5 minutes, this one took over 5 hrs and I couldnt wait any longer. Thank you.