Stock Price

Chuck Krug

Chuck Krug

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.
 
The stock can be used as collateral for a loan. The higher the stock value, the greater the loan potential.
 
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)
 
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?
 
You must log in or register to reply here.
Back
Top