In theory:

1) This would make stocks worth a lot more and produce more dividends so everyone owning stock would get money to spend.

2) Governments effectively indirectly own ~40% of all business profits via corporate taxes, capital gains taxes, dividend taxes, sales taxes. So governments would also have more revenues to spend/redistribute (this depends on governments not wasting it, spending it on wars etc.)

#1 is still mostly just moving money from the poor to the rich. Most people working for a wage are going to be in the bottom 80%, yet the top 20% own over 80% of the stocks.