Why Is It Important for a Corporation to Maintain the Confidence of the Stockholder?

Retaining the confidence of the stockholders is important in the effect that the market
value of the stock has on the corporation. Stock and the value of the corporate stock
does not necessarily provide the corporation with income. It provides the corporation
with capital. In turn, Capital becomes cash and collateral. The better the market value
of the stock, because of high stockholder cofidence, the more a corporation is able to
barter and trade in the world market.
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