Receive money when its stock is traded 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 expert examines receiving money when its stock is traded in the secondary market.
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A company does not receive any money when its stock is traded in the secondary market. In the secondary market, stocks of the company are exchanged among the investors who wish to get out of their investment and investors who want to invest in the stocks of the company. Current holders of the stock may sell the stock for any reason such as need for cash to meet certain expenses; they believe that the stock is ...
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