It also effects how they can borrow and what they pay.
I was just reading an article the other day about the big three auto companies in Detroit.
Because their stocks are rated just above junk status they are having a hard time borrowing money to upgrade. They are looking to Uncle Sam for guarantees to borrow money.
Stewart At 10:42 AM 9/8/2008, you wrote:
>>If a company comes in low for the quarter they are having a problem >>and it leads to stock sell off, which means less capital to work >>with. > >How do you figure that? Many companies like to buy things with stock, not cash. Hence a lower stock price actually does result in less capital to work with.
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