Does money invested into a company through the stock market actually make it to a company for its use?
（I’m referring to non-original stock issues traded on exchanges through brokers. It seems strange to me that market cap valuation doesn’t jibe with money that actually is in the company’s possession for operations and expansion.）
Answer：
Sort of. The company gets its cash when it issues shares of its stock to the open market, first through an IPO then after that additional offerings. The stock is then traded between individuals/institutions/funds but the proceeds do not go to the company.
Posted: July 29th, 2010 under US Stock Market.
Tags: invested into a company, stock market actually