Why do the nations permit speculation through stock markets? The common man is nothing to do with stock markets, commodity markets, metal markets, foreign currency market in any country. Even then the national government allow speculation through tools like forward contracts, short selling etc. The transactions get squared up on the paper and only the brokers get their commission through all selling or buying transactions. Brokers or big speculators like Harshad Mehta fuel the market through speculation. The principle of real demand and supply for physical goods, products is not playing any crucial role. Oil Producing Export Countries OEPC hoard the stocks so as to dictate their terms. I think the barter system is the best to keep away from speculation. The rates of commodities, metals, manufactured goods and agricultural produce, resources be decided on the basis of demand and supply of regional scaricity.