Linked Questions

2
votes
2answers
174 views

How do companies profit after initial shares have been sold? [duplicate]

I have experience in investing and invest in several mutual funds each month, I understand the concepts of how the investor makes money from shares (either by dividend pay-outs or increases in share ...
0
votes
0answers
53 views

How do companies benefit from increase of shares value in the stock market? [duplicate]

I am completely ignorant on the subject and am trying to understand the fundamentals of finance in order to better understand some topics for example how the exchange market works. This is what I ...
0
votes
2answers
109 views

How does stock exchange affect the company? [duplicate]

People invest in the company initially using an IPO. Now I don't understand how trading the stocks with others (who didn't participate in the IPO) would benefit the company. Also, why do the people ...
-1
votes
2answers
78 views

If the only value in a share (excl. dividends) comes from owning part of a company (and few own enough) then why are stocks valuable? [duplicate]

Sorry if the title is a little vague, let me be more precise. This post says that the value in shares comes from: The dividend payout Voting rights Owning part of a company, therefore receiving ...
0
votes
3answers
116 views

Why do managements dislike low stock prices? [duplicate]

From reading various books, I am under the impression that managements usually dislike it when their stock price gets too low. I am not sure why. So my questions are: Given that the job of management ...
0
votes
1answer
36 views

What are the ways in which a company *directly* affects its stock price and vice versa?

It is most common that stock price is affected indirectly by the workings of a company, in the sense that the success or failure of that company influences investor sentiment, which then influences ...
2
votes
1answer
174 views

How does a company earn money from going IPO and being on the stock exchange? [duplicate]

Please clarify if I understand the process of a company going IPO and selling shares on the stock market. A company goes IPO, and starts of with selling 1 million shares on an exchange. Sets the ...
0
votes
3answers
121 views

Noobie question about stocks [duplicate]

If almost everyone can earn money on stocks using good strategies. Why does a company shares profit or losses(or i do not know what the proper term is). What benefits company received? I came here ...
0
votes
1answer
119 views

How does a publicly traded company have access to the funds of its current share price? Or does it have access at all? [duplicate]

To be more specific, let’s say a privately-held company XYZ decides to raise funds by going public. They go for an IPO, and a portion of the equity now becomes public. Let’s say the initial Share ...
52
votes
6answers
29k views

How can a company use money from stock investors when they are constantly being bought and sold?

I am interested in the mechanisms which a company can use the money that investors give them when they buy a public stock since they are being bought and sold constantly. How can a company spend other ...
1
vote
2answers
78 views

Does trading (or abstaining from trading) a company's stock help or hurt the company?

Suppose that I am an environmentalist and I trade lots of green energy stocks and ETFs and I refuse to trade any that are based on coal and oil. By doing so, am I contributing to the success of the ...
3
votes
8answers
955 views

Is it accurate to say that if I was to trade something, my probability of success can't be worse than random?

I'm just trying to visualise the costs of trading. Say I set up an account to trade something (forex, stock, even bitcoin) and I was going to let a random generator determine when I should buy or sell ...
9
votes
3answers
754 views

Avoiding sin stock: does it make a difference?

Until now I've avoided sin stock, such as tobacco, for the typical "moral reasons" (define those as you will), in particular in order to avoid raising their value as a company by creating demand (even ...
6
votes
6answers
10k views

What effect does a company's earnings have on the price of its stock?

I have been trying to figure out the answer to this question this afternoon, and it seems like most people are saying that supply/demand determines the price of a stock. It seems that earnings, which ...
-3
votes
1answer
869 views

How does a public company turn shares into cash?

Once a company starts trading publicly, how do they turn shares into cash that they can then use to grow their business? From what I've read so far, it seems that pre-IPO an investment bank ...

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