The title is self-explanatory but I'll try to give it a bit of a context.
In trying to understand cost of equity, I realised that it all comes down to the fear of a low market capitalization.
From the point of view of a company, a low market cap means that a hostile takeover becomes a risk for management but beside that, what else would that mean? Less exposure to indexes that leads to less exposure to investment funds, so less free marketing? Why would less volatility due to a less traded stock be a bad thing? It's not like the company has anything to gain from it's market capitalization.
Submitted August 15, 2021 at 10:18AM by OppositeFingat https://ift.tt/3yQMjbN
