MOST BASIC QUESTION! HOW COMPANY BENEFITTED WITH THE RISE IN ITS SHARE PRICE?

Companies sell shares in an IPO in order to raise capital. That capital is used to invest in the business and that is how the business makes profits. Not from the sale of shares, but from reinvesting the proceeds from the sale of shares into the company. After the IPO the shares are bought and sold between shareholders on the market. They are merely buying and selling pieces of the company between each other. And these bshareholders are only buying and selling a small parts of the company and not the entire business.That money is not reinvested in the business. It stays between the buyers and sellers.Now is there any beneift for company when share prices goes up in sharemarket ? The answer is the cpmany doesnot benefit directly.

But when a company brings IPO, not all shares are publicly traded. Most important point to check out is no of shares company float and to see how much of the companies shares outstanding it actually traded.
The companies after launching of IPO can sell more shares to dilute the current stock to raise capital. If the company needs more money and their stock is worth 100 bucks, they can easily raise capital by diluting the stock.

Therefore, the Rising stock prices do not put money in the hands of the company. They do increase the wealth of the owners of the company, which are the stockholders. Companies operate with the goal of maximizing the wealth of the owners, thus they have an interest in the price of the stock.
Also, employees and especially executives of the company tend to be stockholders, which means they have a personal interest in increasing the value of the company as measured by the stock price. Hence Companies operate with the goal of maximizing the wealth of the owners, thus they have an interest in the price of the stock. Also, employees and especially executives of the company tend to be stockholders, which means they have a personal interest in increasing the value of the company as measured by the stock price.
A higher stock price means the market value of the company is higher, which can have a positive impact on things like credit rating, company profile, market share, employee recruiting, etc