Stock price in secondary market does not affect the monetary aspects of the company. The company has already raised the money through the Primary market and does not involve in secondary market. Stock price in secondary market does not affect the monetary aspects of the company. However, there are untangibles like Branding, good will, analyst views which can affect the performance.
The company drives the stock price. Price of the stock is a mere reflection of the company’s performance. Good results, good CAGR growth in revenues and profits, good future projects, etc will drive the stock price. Performance indicators lead the stock price up or down. Good performance indicators such as expansion plans, selling of non profitable business, good diversification plans, good debt equity ratio, etc will lead to an increase in stock price.
, , Basics of Stock Trading, Benefits, Buying in NSE & Selling in BSE, COUNTER PARTY RISK, Order types & Validity, Position types, Stock trading - Procedure, Trading types & Trade plan.
