[ale] OT: corporate finance 101

[Chris Farris]

Officers care about the price of the share of stock because they have to
answer to the Board of Directors who are elected by the stock holders.
If the stock price drops, shareholders lose value, and officers and
directors then worry about keeping their jobs.

Don't forget, a company is only in business to enhance shareholder
value. Not for the customers, not for the community and not for the
employees.

Chris

--
Chris Farris
Sr. Consultant
PrimeHarbor Technologies 
http://www.primeharbor.com
chrisf at primeharbor.com

> -----Original Message-----
> From: James P. Kinney III [mailto:jkinney at localnetsolutions.com] 
> Sent: 21 January, 2002 8:29 PM
> To: Atlanta Linux User Group (E-mail)
> Subject: [ale] OT: corporate finance 101
> 
> 
> Why do companies panic when their stock price falls? They are 
> not the ones selling it. Unless they are in IPO, or have a 
> new release. The stock buyer pays the stock seller. The only 
> time the company gets the money is when they are selling. 
> Someone please enlighten me as it makes no sense.
> 
> I've been reading on the Enron mess and it stinks.
> -- 
> James P. Kinney III   \Changing the mobile computing world/
> President and COO      \          one Linux user         /
> Local Net Solutions,LLC \           at a time.          /
> 770-493-8244             \.___________________________./
> 
> GPG ID: 829C6CA7 James P. Kinney III (M.S. Physics) 
> <jkinney at localnetsolutions.com> Fingerprint = 3C9E 6366 54FC 
> A3FE BA4D 0659 6190 ADC3 829C 6CA7 
> 
> 
> 



---
This message has been sent through the ALE general discussion list.
See http://www.ale.org/mailing-lists.shtml for more info. Problems should be 
sent to listmaster at ale dot org.