capital

Very simple question guys - very frequently recently, there's always stories on companies (banks the common one) where the stock price has dramatically fallen, always followed by speculation whether this means they'll need to raise new capital. But I don't get how a falling share price, traded on a secondary market, will affect the company's capital whatsoever?? They got the cash for those shares at the time of IPO (or secondary placing), the amount of shareholders capital that they received / is on their balance sheet doesn't alter every day depending on what price the shares trade at?

What am I missing?! Thanks!

Hi there,

Does anyone know how Babson Capital structures their interview? When do people hear back after the interview?

Thank you.

CNBC and others are mentioning this quite a bit, and a banker I spoke to today also brought it up as a reason why deals are not getting done right now. Frankly, I still don't completely understand what the problem is and how this affects M&A transactions.

Can someone shed some light on what this is, why it's happening, and why it is a problem?