Overall there are many things that go into managing stocks and a company. If an investor feels important then they might continue putting money into a company. It is important for management department to realize that in certain companies, without common or preferred shareholders, that the company may not be where they are now. What may be used as an excuse is that management departments have to balance not only stockholders and ensuring their feeling of being cared for but also employees, customers, and suppliers. … To sum it up basically their feeling of equity can only positively affect the company
Another common miscommunication that upsets investors are stock splits. Companies may have positive expectations from this but it could cause a volatility response. Splitting stocks may have positive stocks but if a company fails to reassure and take steps to communicate then investors start pulling out.Basically splitting it makes them skeptical because they think the company is failing and it needs more people to put money in for an unequal price than what original investors paid.
- Surveys
- Communication
- Relatable
- Transparency
All of these are easy ways to connect with shareholders. Companies can easily protect this part of their income (possibly most of their income) with these factors because all a shareholder or anyone wants is to be informed about where their money is going.
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