Hi Mani,

Hope you are doing good. I have been searching and studying stock market for some time now and this question arises in my mind every now and then.
From what I know a company raises money when it becomes public through IPO. Now people who buy those shares in IPO can sell later on in open market.

So my questions are:
1. If profit is made by the company it is shared only as dividends, but is there any part of this profit that is present in the current share price or is it only dependednt on the sentiments?
2. As the shares are bought and sold by two different entities, does the company whose shares are being bought and sold get any benefit out of this trade?
3. If the IPO was at Rs100 and it has reached 1000Rs after say 5years and still looks good how does it rise so much, is it solely the market sentiments that are driving the price?

These are some questions which question my mind and I cannot get any answers, hope your experience and research has some good answers to these questions.
Your reply would be really appreciated and would help to solve my curiosity.

Regards
Tanmay