as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
avoiding sin stock: does it make a difference?
user
yes, it does matter. you are right that lower demand for a stock will drive its price down. lower stock prices can hurt the company. take a look at fixee's answer to this question: a declining share price will make it hard to secure credit, attract further investors, build partnerships, etc. also, employees are often holding options or in a stock purchase plan, so a declining share price can severely dampen morale. in an extreme case, if share prices plummet too far, the company can be pressured to reverse-split the shares, and (eventually) take the company private. this recently happened to playboy. if you do not want to support a company, for whatever reason, then it is wise to avoid their stock.
assistant