InvestorQ : Does the company get benefit if the stock price falls down?
Swati Naik made post

Does the company get benefit if the stock price falls down?

Answer
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2 months ago


I am not sure what you are asking but perhaps you are asking if the company benefits from the stock price falling. Does RIL benefit if the stock price goes down from 2200 to 2000? It is actually losing value and any rights issue or placement will happen at a lower price.

There is one advantage that I can see. For example, at lower prices the company can do a buyback at a lower price. Also, the promoters of the company can increase their stake in the company when the price falls.