It does kind of hurt them though. Over the past 10 years due to super low interest rates, corporations have been borrowing money to buy back their own stocks. These stock buy-backs, which used to be illegal as a form of fraud, is almost exclusively the reason why stock prices have risen over the past 10 years. Fewer stocks available for people to buy = lower supply = higher price. If the share prices crash, then that means all of these companies shares of their own company have crashed too. Where previously they could have sold these shares in their company for a higher price, now if they were to sell these shares it would fetch a much lower price. Also, I wouldn't be surprised if it came out that these companies were using these shares as leverage for loans; if this is the case then the stock prices plummeting might trigger a margin call for some of these loans.
Oh trust me; I'm NOT saying this is anything other than a total, unmitigated disaster; CEOs are routinely fired when stock price drops or doesn't perform as expected / promised.
CEOs are SUPPOSED to be focused on improving company value for the shareholders.
Now that this woke SJW communist garbage has taken such a hold, I'm glad they are fucking themselves in their own wallets.
ANd yes; you make a very good point about the buybacks; I've read about that a bit; how common they are & how artificially inflated the stock market is..... crazy.....
I'd love for twatter & other silicon valley execs to get billions of dollars in margin calls. >:-)
It does kind of hurt them though. Over the past 10 years due to super low interest rates, corporations have been borrowing money to buy back their own stocks. These stock buy-backs, which used to be illegal as a form of fraud, is almost exclusively the reason why stock prices have risen over the past 10 years. Fewer stocks available for people to buy = lower supply = higher price. If the share prices crash, then that means all of these companies shares of their own company have crashed too. Where previously they could have sold these shares in their company for a higher price, now if they were to sell these shares it would fetch a much lower price. Also, I wouldn't be surprised if it came out that these companies were using these shares as leverage for loans; if this is the case then the stock prices plummeting might trigger a margin call for some of these loans.
Oh trust me; I'm NOT saying this is anything other than a total, unmitigated disaster; CEOs are routinely fired when stock price drops or doesn't perform as expected / promised.
CEOs are SUPPOSED to be focused on improving company value for the shareholders.
Now that this woke SJW communist garbage has taken such a hold, I'm glad they are fucking themselves in their own wallets.
ANd yes; you make a very good point about the buybacks; I've read about that a bit; how common they are & how artificially inflated the stock market is..... crazy.....
I'd love for twatter & other silicon valley execs to get billions of dollars in margin calls. >:-)
SCREW THEM TO HELL!!!