Nowadays more people invest their money in shares. Is this considered good or bad. why?

people invests their large amt of money in shares. So is this good for the country and people or not.who will be benefitted more the share holder or the company of which we have purchased the share.

Most of the time when you buy shares of stock you are buying them from another share holder and not the company itself. The only ways a company benefits is when it issues new shares or it borrows money (interest rate will be determined on how well the company is doing and that will also be reflected in its share price), a company may also use stock options as a way to reward its employees.

Well, to need your answer we need to think in a broader perspective. First think about yourself as an investor...ask yourself why do i invest? your answer would be...for getting some return outta your investment( that is the profit in other sense). so people tend to invest in some instrument for the return they get out of it.
Comin to investing in shares, there are 2 kind of retuns that an investor gets

1. The Dividend ( term for the return) which is paid by the company at regular intervals of time.
2. The Market appreciation of the share price. ( this happens when the company share that you invest in is doing very good and people have good expectation about the performance of the company this is applicable to the Demand and the Supply theory(here the no. of shares being constant in the market)...as the demand goes up so the price and when the demand comes down the price also comes down).
So now i think u have some idea about what i was telling and coming to your point, well as some body earlier replied...the company benefits only while the IPO that is the Initial Public offering , and after that they r traded in the stock market.....where so many other investors trade the stocks.here if there is much demand for a company's shares then obviously the prices goes up..by which the investor gets the benefit..
And in the broader perspective...the company is growing right...which means..it is expanding its business..that means...it employs more people..there will be better quality of products n services in the market place , the company will be payin more taxes to the govt. and hence the economy..i mean there will be overall growth in the economy..
Hope i answered your question.

If the price of its shares already traded in the stock
market is, thanks to investors, high enough, a company
will benefit when it issues new shares. It can issue
a small number of them and receive in exchange a
large amount of cash.

Also, it has less risk to be taken over by "predators",
as they would have to pay more when buying the shares.
It will more easily become a predator itself, by paying
acquisitions with its own high-valued shares.

For the economy as a whole, the more easily companies
can raise equity, the more they can invest in their business,
and the better it is for the general prosperity.
Of course it supposes that those investments are wise, it
is the job of shareholders to gauge that. Sometimes
investors get carried away, forget about rationality and
become driven by emotions (greed, fear, herding...)

As a tool of diversification for the long term, yes, it is
good for investors to own shares, as they might give
them a better return than savings accounts or bonds.

But, as stock prices are fluctuating, there is a bit more
short term risk, obviously. An investor has to identify
its own "risk attitude" and its "time horizon" before
deciding its investment strategy

As there is much homework entailed so as to pick
the right stocks at the right price and the right time,
it might be better to start with mutual funds as they
do the screening job (well, they try) and they have a
balanced and diversified portfolio.
Anyway, beware of mutual stocks that had an
impressive performance lately, it can be a sign that
they took high risks.

Also, presently, it might be wise to wait, maybe for
several months, before putting money in the merry-
go-round, waiting that the market get somewhat
less volatile and uncertain than now.
.

Well that depends on how knowledgeable are you about investing in shares. Let me ask u this? is it good to have guns? Well the answer is both good and bad.

It is not much different with investing shares it can be good and bad both for the countries as well as for the people, we have seen how it has created great wealth for the people and we have also seen how it has created great recession.