Y stock prices drop?

Question

As far as I know, a company issues shares to fill up it financial gaps or to expand.......so when the company making losses the share prices should be high............but it is otherwise round .....y?

Answer 1

1. More sellers than buyers

2. Lose confidance in the company

3. Bad results/losses

Answer 2

The price of the stock is not set by the company, except during th initial sale of stock when the company is formed.

The price is set by what current stockholders are willing to sell the stock for and what current buyers of the stock are willing to pay. When the company is hurting for money fewer people are interested in buying, and more people are interested in selling so the price goes DOWN.