How do stocks work and how do both sides (company and buyer)benefit from it?
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Stocks are the representation of a shared ownership in a company. If you own 1% of the stocks of a company you own 1% of the company. During annual shareholder meetings where things like the budget, strategy, board of directors, etc. is voted on you have 1% of the voting power. And if that budget includes dividends to the shareholders you get 1% of those dividends.
Stocks were invented because companies would become larger then what a single person could afford. It costs a lot of money to start and build a company to where it becomes profitable and no single person have that kind of cash. But if a lot of people get together they can scrape together enough money to build a big profitable company.
Notice that the company itself does not particularly benefit from having stocks issued. But the company does not actually have anything to say in the matter as it is completely owned by the shareholders. Asking how a company benefits from having stocks is like asking how a car benefits from having a registration. The company is just a tool for the shareholders to make money and have no will of its own. Workers within the company might have opinions and a few is even allowed to express those opinions to the shareholders but these employees have their own separate agendas and no real power other then that granted to them by the shareholders.
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