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if the stock prices of a company goes down, what will be the effect?



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what will be the affected area if the share prices of a company goes down?

2 Answer(s)


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This is definitely not a good sign as far as a company per se is concerned. This can happen because of various reasons like investment climate, economic condition.
If the effect persists for a long period of time the equity shareholders will try to sell their shares and the value further deteriorates

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If the share price of a company goes down then the shareholder's net worth will decline. Though it will not have any impact over the networth of the company per se . As it is understood that the networth of a shareholder is different from that of a company. On the other hand the reasons for the down fall in the share price could be many and they can be analyze from topic to topic.

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