What are the benefits of increasing the market value of the stock to the company?

Among the company's indicators, the stock market value is more important, which drives many operations. The market value is determined by the stock price and the share capital, and the market price per share multiplied by the total number of shares issued is the market value of the stock. Therefore, the higher the share price of listed companies, the higher the market value. So, what benefits does the increase in the market value of the stock have for the company?

What are the benefits of increasing the market value of the stock to the company?

1 Enhance the company's popularity and value. The rising stock price means that the market has good expectations for the company, which plays an advertising role and attracts the attention of more investment institutions.

In the future, the company's refinancing can be issued at a high premium to obtain more funds. When the company needs development funds, it can reduce its holdings and get more cash.

If the value-added shares held by the controlling shareholder are invested in the secondary market, they can get more benefits than the agreed transfer.

Listed companies are recognized by investors mainly through their main business development and good corporate management. The rise of stock price means the increase of the overall market value of the company, and mergers and acquisitions can transfer less equity to acquire other companies. In addition, investors' preference and behavior drive can affect the stock price and increase the circulating market value of the company.

Generally speaking, the greater the market value of a company, the smaller the risk of being merged by other companies. Therefore, the increase of stock market value is beneficial to companies in many aspects, and investors should also look at companies with better market value when investing.