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Now I have to pay some premium because of something that has nothing to do with the value of my company?The value of your company is decided by the market participants with supply and demand. There's the academic idea that your company can be valued by your profits and losses, but the truth is, those more less to do with with the value of your company than the potentially demand for your shares. In other words being in an ETF may be more relevant to your stock price than the debt on your balance sheet.
>* Why do I care what the share price is or what volume of sales is occuring on the stocks around me?*
You might not care, but the other 40% might. It's tempting to think the other 40% is just amorphous group of shareholders, but it's likely it includes your business partners, or employees who will want to see the stock rise so they can eventually sell. And those partners and employees, upon learning that you aren't maximizing their shares may choose to leave, ultimately damaging your business.
In other words, once you have multiple owners, as long as the green line goes up, everyone is incentivized to continue doing well.
The value of your company is decided by the market participants with supply and demand. There's the academic idea that your company can be valued by your profits and losses, but the truth is, those more less to do with with the value of your company than the potentially demand for your shares. In other words being in an ETF may be more relevant to your stock price than the debt on your balance sheet.
>* Why do I care what the share price is or what volume of sales is occuring on the stocks around me?*
You might not care, but the other 40% might. It's tempting to think the other 40% is just amorphous group of shareholders, but it's likely it includes your business partners, or employees who will want to see the stock rise so they can eventually sell. And those partners and employees, upon learning that you aren't maximizing their shares may choose to leave, ultimately damaging your business.
In other words, once you have multiple owners, as long as the green line goes up, everyone is incentivized to continue doing well.