"Employees should care about their company's share price - InfoWorld"

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Employees should care about their company's share price - InfoWorld



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August 30, 2010

Employees should care about their company's share price


Share price is often an indicator of a company's financial health and can influence analysts' and lenders' evaluations






Dear Bob ...


Background
I've
grown weary of debating the gap between a company's stock price and its
financial health. People here seem to believe a company makes money the
day its stock rises because the stock is more valuable. They don't seem
to understand companies don't own stock after the shares are issued and
sold. Shareholders (not companies) own those shares and reap the
associated gains/losses. I think this mistaken perception matters
because it leads to placing too much significance on stock performance.




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