• Ech@lemm.ee
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    9 months ago

    So like, I’m no stock broker, but if I understand right, a company doesn’t directly benefit in any way from a higher stock price, right? They could split it, but for the most part, once their shares are bought up, the only people benefiting from the stock are rando shareholders and the handful of employees with stock options.

    • jordanlund@lemmy.worldM
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      9 months ago

      The stock price determines the overall value of the company and has all kinds of ramifications, purchase ability, loan agreements, etc. etc.

        • alienanimals@lemmy.world
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          9 months ago

          Adding to this:

          Executives are often paid in stock so they’re invested in seeing the price go up.

          A corporation’s board of directors (who lead the company and can fire/hire executives) are also paid in stock or have very large stock holdings already.

          All the people at the top benefit from seeing that stock price go higher. They care more about stock price than whether or not customers are happy, or if they’re doing right by their employees.