its very use full to recall please update is it correct or not.. and last one i m not understand so please explin
, , Basics of Stock Trading, second, stock, Trade
, , Basics of Stock Trading, second, stock, Trade
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Hi,
This is an appropriate answer for the last question—– The company gets the money during IPO and price changes of a stock affects only the buyers and sellers of the stock. so, the stock price may not impact the performance of the company, but the performance of the company may influence the stock price.
Hence the stock price is driven by company performance and the company does not affect by the buying and selling the shares. However, the share price may have an indirect impact on the company performance, for example, a declining share price will make it hard to get a loan, can’t attract further investors, difficult to build partnerships, goodwill etc…