Lets assume I run a bank and my stock price has fallen from $100 to $85 dollars over the period of 1 month. As the bank CEO/CFO/Treasury, why does it matter what my company's stock price is, in the public markets? It's not like investors are directly pulling money out of the bank's equity when they sell their stock on the open markets so where is the harm?
The only thing I can see where trouble may lie for the bank is if they need to issue any other securities in the market. The market may not be as receptive to buying their securities. Hoping someone could chime some more light into this and potentially even explain a financial statement impact, if there even is one. Thanks!