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After a company sells stock to the public and collects the proceeds from the sale, how does the rise and fall of the stock trading in the stock market affect the company?

April 26, 2017COMPANY proceeds public Rise sale sells stock Stock Market stock trading

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After a company sells stock to the public and collects the proceeds from the sale, how does the rise and fall of the stock trading in the stock market affect the company?

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A – As the share price rises and falls in the market, the total equity value of the company rises and falls. A higher equity value makes it easier for the company to borrow or issue more shares for growth.