How does change in Stock/Market Price directly affects the company?

google

;-)

stocks more or less values a company. the people that on the stocks, mainly share holders have the power of affecting how the company looks.

if shareholders feel the company is deteriorating they sell there stocks, more stocks on the market the worse the comapny is seen therefore decreasing there value.

this is normally early sign for creitors, customers and so on as it can show the company is failing to met profit margins

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