share prices

How does a decline in share prices affect companies?

Most investors would know that just because a listed company’s share price changes daily, it doesn’t mean that the that anything fundamental has necessarily changed on that particular day. Listed companies originally receive funds when they sell shares through an Initial Public Offering (IPO). It is within the secondary market on the stock exchange where the share price is determined by the interest between the buyer and sellers. However, even though a company does not directly lose money when their …

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