Why does a company want the value of its stocks to be as high as possible? My professor claims that a company want the value of its stocks will be as high as possible. Why should the company care? The company "minds its own business" and make its money. Why should it cares if the value of its stocks is \$25 or \$300?
The board of directors is supposed to represent (or work for the interests of) share owners. Share owners prefer higher prices if and when they want to sell their shares. The board chooses the CEO and will retain the CEO if he helps share owners realize their preferences.