Is stock market a black market ?
Sensex is soaring at levels all time high and setting new records everyday. I, too, have made some money through mutual funds, but that couldn't stop few thoughts coming to my mind. I don't understand how a company benefits if its stock price in the market rises. Company gets the money only when it releases the shares in the market for the first time (IPO). That is the real investment people make in the company. After that, it is only the people (stock traders) who make money from the company's stock. Isn't it equivalent to selling movie tickets in black outside the theater. Theater owner gets only the legitimate price of the ticket. If the movie is good, people selling the tickets in black make money by increasing the price of the ticket. Then, I don't know how economy gets help from the rising stock market. If people put money in stock market, the money is not going in developing the nation or economy (except money invested in IPO), it is just exchanging hands of