Why is it important for a corporation to maintain the confidence of the stockholder?

Retaining the confidence of the stock-takingholders is important in the effect that the merchandise evaluate of the stock has on the corporation. Stock and the think of of the corporate stock does not necessarily house the corporation with income. It provides the corporation with capital. In turn, Capital becomes cash and collateral. The better the food market value of the stock, because of high stockholder cofidence, the to a greater extent a corporation is adapted to barter and trade in the man market. Its like using your shell for collateral on a business loan, the better the market value of your house, the better disablement of the loan. The much a corporations stock is worth, the better the terms of doing business. I think that the stockholders are much more savy that many a(prenominal) old age ago. With the internet and financial describe, they befuddle so much more tuition at their disposal to make decisions. The problems become with the reporting and information isnt possible (Enron). I worked in investment banking for many years and saw how IB change research to companies to gain IB deals. In getting exposure for research, they were more visible which attracted more shareholders and transactions. I think advertising and media coverage are big in gaining exposure, building interest in products which leads to purchases.

We dont realize how much change we receive in our every day life from driving force to work, auditory sense to the radio and watching tv. We are unindated with advertising. sometimes its the catchy tune or funny commerical that catches are help which leads to research and a purchase. Actually, we have more p eople in the market (day traders) that are ! looking for to make the quick take so corporate confidence has nothing to do with the reasons they purchase and sell. I think there are some advanced investors... If you penury to get a full essay, order it on our website: OrderEssay.net

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