[lsc]

this is assuming that the total expected return on those rapid-growth companies is greater than the total expected return on publicly traded companies.

I'm not sure that is the case. For every amazon, there are thousands of pets.com.

Now, amazon did make a whole lot of money, so I could be wrong; compiling reliable statistics from private companies is notoriously difficult. Personally, I think this lack of transparency is going to push the market more towards focusing on getting money from investors rather than on actual profits.

[rooshdi]

Although start-up investments may be more volatile than established company investments, the fortunate few elite will still sustain an ever-growing head start over the general public when investing. Plus, the original incentives of founders publicly trading their companies in return for critical funding needed for growth are now being replaced by rich investors who just want a large return once private market valuations have stagnated. The value of the public market is shifting from growing companies to growing wealthy investors' wallets. These developments are quite contrary to the original intentions of the public markets and are increasingly depreciating the opportunities given to the general public.