Don't want to ripe ...

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 ...

Really Pink....

When I was a kid, for me the definition of Lakhpati was - "A person who owns more than one lakh rupees is a Lakhpati" . And yes at that time this definition used to hold true almost. A Lakhpati would be very rich, would have all which we used to call luxuries. You could find only a single lakhpati in a typical gali or mohalla. But as time passed, those luxuries have got changed into necessities and social label of a lakhpati have changed from Rich to Middle class. A lakhpati doesn't catch the eyes of people now as he used to. Its true that value of a lakh rupees have got diminished a lot. But for the diminished value of Lakhpati , its not that the rate of inflation is responsible. Its because of the fact that now lakhpati in the Indian gali/mohalla is not the only lakhpati in that gali/mohalla . The whole Indian middle class has taken a big step upward, changing the definitions of rich/poor/middle class. Welcome to India: The land of lakhpatis :-) Current So...