In analyzing the connections between democracy and the stock market, I note how the trading of equities really only exists because of a political decision in favor of limited liability for corporations. I then explain the political drivers of stock prices, including elections and wars. The main pillars of the government’s regulation of the stock market are described. These pillars—including mandated disclosure, short-selling restrictions, and insider trading laws—are found wanting. I end the chapter by suggesting that the state, through the central bank, is primarily responsible for bull and bear market cycles.