Once shares are issued in the primary market,the market price at which they trade on the secondary market is of no concern to the corporation's management since the corporation receives no cash from those transactions.

Question

Quizplus · Accepted Answer

The market price of shares in the secondary market can affect a corporation's ability to raise capital in the future, influence its reputation, and impact executive compensation tied to stock performance.

Once Shares Are Issued in the Primary Market,the Market Price