Why is it important for a corporation to maintain the confidence of the stockholder?
Title: Why is it important for a corporation to maintain the confidence of the stockholder?
Category: /Business & Economy/Management
Details: Words: 586 | Pages: 2 (approximately 235 words/page)
Why is it important for a corporation to maintain the confidence of the stockholder?
Category: /Business & Economy/Management
Details: Words: 586 | Pages: 2 (approximately 235 words/page)
It's almost like confidence is its own commodity and serious investors try to beat the curve and buy stock at a point just before confidence rises (leading to a higher market value for the stock).
If confidence in a company's stock is perpetually high (Coca-Cola, Walmart), you can
assume that investors won't see a relatively high return on their investment. People
invest in these kinds of companies because they're confident that the company is a
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company. Wise man. He know has
one the largest natural gas and Co2 transport companies (which is
what Enron was) in the Nation. We are a low-cost asset operator.
The company caps salaries, and we don't have a lot of corporate
perks, or unneccessary overhead. It is a very cost effictive
corporation. We look at the long term outcome. With being so cost
effictive, and low-cost asset operators it has made our stock sky rocket.