Why is the private market legal?

[Mitch]

When only private investors are allowed to by into a company like Facebook, wouldn't it benefit and strengthen the economy to only allow public markets?
well then is there any point to a stock market anymore?

[cttg121]

It's each companies decision. As the company/business owner you have the right to decide if you want to keep your company private or make it public. That's a fantastic right to have as a business owner. The invest can only invest in a private company if the private company accepts the offer.

[Aden]

It's all about freedom, and being able control/run your buisness as you see fit.
Anyone can invest into the private market, but the company has to accept the offer.

In the private market you are buying your shares directly from the company, and selling them directly back to the company

Stock market is the company sells the shares, and then you are free to do what you want with the shares.

[John W]

When you go out shopping don't you feel like you have the right to shop where you choose to even if it is more expensive? Isn't it your prerogative to choose who you associate? Don't you have a right to select who your friends are?

Likewise, as long as a company is kept private, they have the right of association. If they want the benefits of the wider exposure of a public market then they have to abide by the rules of that market.

If you want an economy where by legislation, the only choice that you're allowed are the ones deemed best for the nation then you might want to try communism or at least the feeble attempts to implement communism through government bureaucracy.