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

Retaining the confidence of the stockholders is important in the effect that the merchandise value of the stock has on the corporation. Stock and the value of the corporeal stock does not necessarily provide the corporation with income. It provides the corporation with capital. In turn, great(p) draws cash and collateral. The better the aliment merchandise value of the stock, because of high stockholder cofidence, the to a greater end a corporation is able to barter and trade in the orbit market. Its like using your cuticle for collateral on a business loan, the better the market value of your house, the better damage of the loan. The to a greater extent a corporations stock is worth, the better the footing of doing business. I think that the stockholders argon to a greater extent more savy that many an(prenominal) historic period ago. With the internet and financial reporting, they befuddle so much more reading at their disposal to make decisions. The problems become with the reporting and information isnt manageable (Enron). I worked in investment banking for many years and saw how IB modify research to companies to gain IB deals. In getting exposure for research, they were more visible which attracted more sh beholders and transactions. I think advertise and media coverage are huge in gaining exposure, building cheer in products which leads to purchases.

We dont realize how much change we receive in our every sidereal day life from driving to work, auditive sense to the radio and reflexion tv. We are unindated with advertising. Sometimes its the catchy air travel or funny commerical that catches are attention which leads to research and a purchase. Actually, we have more the great unwashed in the market (day traders) that are looking for to make the quick buck so corporate confidence has nought to do with the reasons they buy and sell. I think there are some civilise investors... If you penury to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper