Why do corporations pay attention to what is happening to their stock in the secondary market

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02-05-2022
Business

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Why do corporations pay attention to what is happening to their stock in the secondary market

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Agstephens6404idn Agstephens6404idn · Answer 1 · 2022-05-02T14:22:10-04:00

Agstephens6404idn Agstephens6404idn

02-05-2022

Answer:

The existence of the secondary market makes their stock more liquid and the price in the secondary market sets the price that the corporation would receive if they choose to sell more stock in the primary market.

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