Let’s say we just permanently shut down the stock market.
It just doesn’t exist anymore.
As a result, there’s also no more Dow Jones, S&P 500, etc.
What would the impact be?
How would the economy change?
How would we measure the strength of the economy?
So everything would become private equity. Private equity exists now so it's not like business would collapse. (Every Silicon Valley startup are private equity.)
Venture capital would become even more important. Big companies would be even more under the stranglehold of singular investors than they are now.
There would be much less public transparency on business operations and finances, none of the rules the SEC has for publicly-listed companies would be relevant anymore so the size of that bureaucracy would decrease and they would then do mass layoffs.
People would have no easy way to use their wealth from working and put it into a retirement account. Alternatives would prop up and assuming that all the foreign stock markets were still around, you would see a more massive movement of American money into foreign business which would harm business here. (It cannot be said enough how much of an advantage the notion of IRA's and 401(k)'s have for businesses listed on the stock market in New York compared to their foreign competitors.)
Liquidity (price discovery by another name) would drop and the finances of big business in general would become more opaque and shady.