How does my employers falling stock price effect our company? ?
In particular I am talking about stock symbol (AFG). I have been watching the chart for the past few days, and have watched it continue to fall. How does this, or how will this, effect us as employees, if the prices per share continues to fall? I'm not worried or anything, but I am intrested in knowing. Thanks!
Public Comments
- Uh huh...bu-bye.
- Lay off's... if your company isnt making money anymore then they are gonna have to start taking off some payroll. Layoff's or Cutting the hours.
- I have never heard of a company going bankrupt BECAUSE their stock price was pushed down by misconceptions. However, I often hear of companies going bankrupt, and seeing the result in an ever lower stock price. Bad perceptions, poor management, poor cash flow, poor sales, poor profit margins, and more can cause a company's credit rating to go down, which increases borrowing cost. If they don't have enough money saved to keep from borrowing, then this can contribute to a loss of profit. But, to answer your question, a poor stock price never CAUSES a company to go bankrupt. Rather, a company going bankrupt will likely result in an ever lower stock price IF there is full disclosure. The problem that Wall Street is facing today is a lack of full disclosure, and fair market value, for the packaged mortgages out there. Check out: 1) Sold Short, by Mario Asensio 2) Crash Proof, by Peter Schiff 3) http://www.europac.net/
- If your stock price falls, your company has fewer options for raising money for new initiatives, which means its harder to grow the company. When your company grows, it provides more opportunity for the employees, in terms of advancement, pay and profit sharing if you have that.
- Not worried? Ha. So you're one of those people putting their fingers in their ears and singing lala la la la la huh? If the price per share continues to fall, then that means investors will continue to jump ship. In order to stay afloat, a business needs MORE investors if the price per share is low. No investors= no money = no business.
- Investors are saying your company may be effected by the economy, so like a previous poster said, expect possible layoffs and cutting back on OT.
- Do Not freak out-- everyones stock is falling, all over the world. the smat thing to do is Buy Buy Buy, with stock this cheap you need to buy, it will go back up
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