Stock Price

Discussion in 'Stocks' started by Chuck Krug, Apr 3, 2014.

  1. What are the main reasons a (majority) holder of a stock in a company want the price to be as high as possible? If he doesn't sell it's just a paper value.

    1) Take-overs: If a take-over is paid for in stock.
     
  2. Baron

    Baron Administrator

    The stock can be used as collateral for a loan. The higher the stock value, the greater the loan potential.
     
  3. Any more?

    Baron mentioned reason 2) taking out a loan with stock as collateral.

    I would like to discuss:
    3) Charitable gifts of stock have a higher value (to external or own charity)
     
  4. SIUYA

    SIUYA

    do you mean, when a wealthy philanthropist donates stock they own to a charity, they get the tax write off at the market price at time of donation?
    As maybe opposed to them having to sell stock, pay tax, then donate cash?
     
  5. I was just discussing the advantages of a higher stock price.