You do realize that a company does not share in the increase of its stock price, unless it owns its own stock or it issues new stock. Neither of which is common.
Companies sell stock to raise money. Its a one time event. You cannot sell stock and own it at the same time. Nor can you issue new stock without depressing the price of current stocks.
If I sell $10 million in stock to build a factory, I no longer own that stock, nor do I really own the factory. I sold a future factory for current stocks. If those stocks go to $100 million in value, I haven’t made any profit from the stock increase, the stock holders have.
Stock prices and economic performance are linked. Try the capital infusion is one time but the stock price is dependent upon the value of future cash flows. the chart was showing that changes in hiring behavior and stock prices were related (looks like stock prices led by 6-9 months). My company slashed workers when our volumes were falling. Not so coincidentally the stock price was also falling as were our earnings due to market factors. Now that our end markets have been recovering over the last 18 months out stock price has more than tripled and our hiring has increased because we have volume.
Opinion and reasoning are not fact. Reality is that stock prices going up means more hiring and lowering stock prices mean layoffs. The hard numbers were posted above. Things are what they are whether we agree or understand.
That settled, we should be also able to understand first that corps are able to sell stock only when buyers will later be able to sell the shares at a profit. Market niches and CEO's with poor track records don't get stock buyers. Next lets understand that the IPO (Initial Public Offering) is not the only time shares are sold. Companies routinely issue more shares when the stock price goes up and then they announce buy-backs when it falls. Finally, most insiders own shares or stock options. It's legal, widely understood, and it provides an extra incentive for superior corporate leadership.
