Democratic vs Autocratic government The “Republic” Difference In Stock Markets

Regulatory bodies 

Democratic countries-  Well-established market regulatory Bodies to ensure rules and regulations and fair trade practices.. Eg SEBI in India, and SEC in America. Autocratic countries- Less transparent regulatory frameworks, leading to a higher risk of market manipulation and insider trading. Eg- China

Liquidity in the market

Democratic Countries have more participation of Individual and Institutional Investors due to more brilliant infra and strong investor protection. Autocratic Countries suffer liquidity due to limited market access, restrictions on FII and lack of proper infra. Eg- NYSE vs Russia

Government Intervention

Democratic countries- Minimal, allowing market forces to determine price and investment decisions. Autocratic countries-  Higher levels of government interference- controlling or manipulating stock prices or favouring/ Biasness Eg- Venezuela- the government has been accused of manipulating stock prices

Access to Capital

Democratic countries' stock markets typically offer greater access to capital for companies through initial public offerings (IPOs) and secondary offerings. In Autocratic countries, limited investor participation, capital controls, and fewer funding options.