The healthy development of the stock market provides a convenient financing condition for the stock company. In recent years, the practice of world economic development has proved the importance of the stock market. However, the stock market, like other markets, has its own side and its failure. The failure of the stock market is the direct cause of the government intervention. In China, the government should not only correct the market failure, but also make up for the incomplete market. This paper analyzes the performance of the general market failure and the behavior of the government and the incomplete market and the behavior of the government.