At the time of IPO subsription, our investment directly goes to respective company but when we invstment secondary maket where do the investments parked. is any way it goes to the company in whose share the money is invested
3 Replies
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 05 November 2008
The invested money in the case of secondary market investment is not going to the company whose security is purchased!
Ramakrishna
(Financial Executive)
(438 Points)
Replied 10 November 2008
Dear sanjaya!
The money invested in secondary markets is only transferred from the Seller to the Purchaser through an elaborate financial mechanism.
Good Bye! Cheers!!
CA Sunny Sharma
(Service)
(234 Points)
Replied 23 November 2008
secondary market indicates the value of company's earing. Company never changes the value of its shares in its BS itt always shows it at their face value but as and when it earns the profit itz reserves get increased so in market the price of the shre is reflection of the same. price of a share always a total of company's earnings & future growth.
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