Why is it important for a corporation to maintain the confidence of the stockholder?

It's almost like confidence is its own commodity and serious investors try to beat the curve and buy stock at a point just before confidence rises (leading to a higher market value for the stock). If confidence in a company's stock is perpetually high (Coca-Cola, Walmart), you can assume that investors won't see a relatively high return on their investment. People invest in these kinds of companies because they're confident that the company is a …

…company. Wise man. He know has one the largest natural gas and Co2 transport companies (which is what Enron was) in the Nation. We are a low-cost asset operator. The company caps salaries, and we don't have a lot of corporate perks, or unneccessary overhead. It is a very cost effictive corporation. We look at the long term outcome. With being so cost effictive, and low-cost asset operators it has made our stock sky rocket.