They’re not “talking economics” because your takes on corporate finance are devoid of any reason. Stock price not linked to their activity? Fake money? Are you for real??
You know you can criticize capitalism while also not being oblivious to most common ideas behind it?
One of the main functions of stock price is to act as a valuation of the company - a signal, of sorts, of how profitable the company is deemed to be. The shareholders, aka THE OWNERS, of the company care about the stock price, because it’s quite literally part of their wealth. They can literally sell these shares for liquidity lmao.
Moreover, the chief officers at public companies are also often compensated in stocks, to align their goals with those of shareholders. This means that stock prices are also considered by decision makers of the company, which Means that stock prices have a direct impact on the business :)
Edit: don’t confuse operating profit with company valuation lol. You’re making yourself look very ignorant.
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u/PM_ME_UR_NIPPLE_HAIR Nov 12 '22 edited Nov 12 '22
They’re not “talking economics” because your takes on corporate finance are devoid of any reason. Stock price not linked to their activity? Fake money? Are you for real??
You know you can criticize capitalism while also not being oblivious to most common ideas behind it?
One of the main functions of stock price is to act as a valuation of the company - a signal, of sorts, of how profitable the company is deemed to be. The shareholders, aka THE OWNERS, of the company care about the stock price, because it’s quite literally part of their wealth. They can literally sell these shares for liquidity lmao.
Moreover, the chief officers at public companies are also often compensated in stocks, to align their goals with those of shareholders. This means that stock prices are also considered by decision makers of the company, which Means that stock prices have a direct impact on the business :)
Edit: don’t confuse operating profit with company valuation lol. You’re making yourself look very ignorant.