I think GP is arguing that public companies, which are often blamed for "shortcomings of capitalism" are in fact not capitalistic at all. "Collective ownership of means of production" was postulated by Karl Marx as one of the pillars of communism.

Publicly traded companies allow shareholders to limit their risk - when things start to go wrong you sell your shares to a bigger fool, and it's not your problem anymore. Also, as shareholders are not personally responsible for wrongdoings of their companies it also limits the risk to the buyer.

In short: publicly traded companies are enablers for moral hazard that we constantly observe in financial markets.