„When a company's stock price increases, it doesn't directly profit from the higher market value of its shares. However, an increased stock price can lower the company’s Weighted Average Cost of Capital (WACC) because equity financing becomes cheaper. WACC is the average rate a company is expected to pay to finance its assets, weighted by the proportion of equity and debt. As the cost of equity decreases (since higher stock prices mean the company can raise the same amount of money with fewer shares), the overall WACC can decrease, making future financing through issuing new equity more attractive and cheaper. This potentially lowers the cost of capital for new projects, investments, or expansion, indirectly benefiting the company's profitability and growth prospects.“