Huh? The stock market absolutely has to do with allocating capital. It, together with the bond market, is the place where large companies go when they need to raise funds.
Bond traders and stock traders alike both balance the risk and reward of a company's offering in order to determine a fair value for that offering. Valuing risk and reward is valuing the company and valuing the company is the most critical part of a stock offering. Any post on here about raising money from a VC will talk about the valuation of the startup.
A small percentage of stock market transactions are Company to Investor. Most transactions are Investor A to Investor B which only indirectly impacts a company’s value. Clearly they are related, but it's generally much better for investors in healthy companies for that company to get money from the bond market than the stock market.
PS: Consider a company with consistent revenue/dividends but zero transitions on the stock market. Its value is going to be heavily influenced by stock market conditions, but it's ability to raise money is going to be dominated by the state of the bond market.
Edit: My point is what it means when a transaction between Invester A and Invester B happens on the stock market at a given price.
Bond traders and stock traders alike both balance the risk and reward of a company's offering in order to determine a fair value for that offering. Valuing risk and reward is valuing the company and valuing the company is the most critical part of a stock offering. Any post on here about raising money from a VC will talk about the valuation of the startup.