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A corporation only receives fundsin exchange for stock at the time ofan initial public offering (IPO), or a secondary offering.However, corporate leadership keeps a very
A corporation only receives fundsin exchange for stock at the time ofan initial public offering (IPO), or a secondary offering.However, corporate leadership keeps a very close eye on the market price of the company'sstock at all times and the stock price is always a major consideration when determining executive compensation. If the company does not receive funds from the trading of its shares on the secondary market, why should it care about the market price of the stock?
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