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    Stock price in the secondary market?

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    Does a company receive money when its stock is traded in the secondary market? How does the company affect the price of its stock? Why is a company concerned about its stock price in the secondary market?

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    The company will not receive money when its stock is traded in the secondary market. They will receive the money from the investors during the IPO of their stocks or the primary market only. The secondary market is a market in which an investor purchases a stock from another investor rather than the issuer, subsequent to the original issuance in the primary market.

    The company's performance and expected ...

    Solution Summary

    This solution explains the importance of the secondary market in 271 words.