[vhanda]

Wouldn't the share holders care more about the profits of the company which are then being given as dividends instead of the price they can trade the share price at?

Isn't the amount of profit the company is making (and how that will change) what matters and not what its share price is?

[nemothekid]

Most companies don't pay out dividends. Google paid out its first dividend in 25 years and it's only 20 cents a share. Your wealth increases faster from the share price going up vs a dividend and it's not even close. Couple that with the fact that you don't have to sell - you can just borrow against your shares to get liquidity, most are far more incentivized to care about the stock price.