Assume you own stock in a company, and you are in the process of selling the stock

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Assume you own stock in a company, and you are in the process of selling the stock to another investor. Since the transaction will occur between the buyer and the seller, the company will receive no direct cash flows as a result of the sale. Why should the company’s management care about the price you get for your shares if the company does not receive any direct cash flow from the transaction?

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Related Book For  answer-question

Principles Of Managerial Finance

ISBN: 9781292018201

14th Global Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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