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A comment on China releases a five-year regulation blueprint for broader crackdown. Parent comment

Re:China releases a five-year regulation blueprint for broad... by JohnPrine on Thursday August 12, 2021 @03:05PM (#28160166)
citation needed for your first point: "Companies extract money from the stock market by issuing IPOs, after that happens, it doesn't matter to them very much at what price their shares are traded"
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Re:China releases a five-year regulation blueprint for broad... by vkou on Thursday August 12, 2021 @04:09PM (#28160846)
It matters to the people running those companies (Because they own a lot of stock, or work for people who own a lot of stock). It matters less for the firms, themselves.

A high stock price prevents a corporate takeover (which is not a real-world-value-destroying activity - factories operated by a company don't burn up when it happens), and it makes it possible for the firm to raise money by selling stock. In a world of low interest rates, and easy credit, this is not very important.

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