• Cethin
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    3 months ago

    That’s not how stocks work. Share value doesn’t go to the company unless the company sells shares of itself that it owns. It also doesn’t lose money from share value unless it buys shares. The value of shares goes to the shareholder when sold, and it comes out of the wallet of the buyer.

    It’s a show of a lack of faith maybe, but it doesn’t effect the company at all except for the effect on stock value from selling if the company also decides to liquidate shares too.

    • Guntrigger@feddit.ch
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      3 months ago

      Share prices don’t only fall if the company liquidated stock. They will also fall from something like a mass sell-off because lower and lower prices will be commanded to sell large volumes of stock.

      You know, like the one in the article that talks about the 25% drop in share value.

      • Cethin
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        3 months ago

        Yeah, I mentioned selling dropping the price, but the price doesn’t effect the company except for the stocks the company itself sells. Having an extremely high or low stock value doesn’t matter if the company isn’t selling stocks. It’s only an indication that the company is doing well or poorly.