I think this is an area that I don't understand so I come looking for help
I was wondering what the effects are on a company of a large increase or decrease in it's share price. Why are many companies very careful about keeping shareholders on-side, for example trying hard never to cut dividends.
So far my thinking is - if a company needs to raise capital by issuing shares then a much higher share price is obviously very good. Also, a very low share price might result in the company being more vulnerable to a takeover.
What are the factors that I've not been able to think of?