You can conduct a simple check on how much (cash) a company brings in
through the sale of stock by looking at cash flow information. This is not
to say, however, that the stock market is the means by which this is
achieved in all circumstances; no doubt the majority of stocks are
pre-subscribed by various funds.
That said, market price for stocks (derived for the most part through the
stock market) govern the volume of cash brought in by a company so that IPOs
will be more productive and more widespread when the stock market is
over-priced.
In the current climate, markets that rely on stock sales to generate cash
(Biotechs are a good example), are having serious problems.
Simon Ward
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