[thebrid]

Why exactly? Isn't the primary reason for having public markets that companies can sell equity to fund growth?

The stock market has companies from massive to tiny. Each investor has the right to choose whether or not to invest in any one company. Some might be best served by investing only in profitable blue chips. For others, investing in IPOs is appropriate.

Your ire might be better directed at index companies who change seasoning rules right before a big IPO forcing unsuspecting investors to invest in unsuitable companies. And kudos to indexers like S&P who do not change the rules.