The Legal System Of Risk Prevention Of Venture Market

Nowadays the private small and medium enterprises have become the gigantic force to the growth of our economy. They take an important part in our economy. This is important to the persistent and healthy growth to our economy. However, the small and medium enterprises, especially the high-tech and fast growth ones, are in face of a plight of capital needs in operation and long-term development. For the sake of solving this problem, establishment of venture market is an effective way in according to the experience from overseas countries.On the analysis of the venture markets, this dissertation, on the basis of theories and verification of facts, found that the venture market as a whole and its listed companies have greater and more potential risks than the main stock market as these are the characteristics of high-tech and fast growth companies therein. Also, this dissertation found out the special risks of the venture market namely, formation risk, market liquidity risk and enterprise risk, according to the blue print of the Venture Market in our country.Dealing with these special risks, this dissertation studied the corresponding legal system from the protection of investors'interest legal point of view. First, it analyzed the perception to and definitions of risk in the field of academy and law in both overseas countries and ours. After comprehensive analysis with creative arguments, it suggested a definition of risk in law. Second, it studied the risk prevention theories and then creatively argued and built up the legal principle of risk prevention as the bottom layer of those theories. In respect of the formation risks of the Venture Market, this dissertation suggested retaining the existing Small and Medium Board and its listes companies.The Venture Market should be established separately. Together with the established means of Venture Market System, it is dissolved this special risk. In respect of the market liquidity risk and enterprise risk of the Venture Market, this dissertation systematically described the risk prevention legal system of the stock market in our country and then compared it with some distinctive venture markets in the world, in order to take the good and drop the bad. Among them, it suggested taking consideration of the experience and legal system of the successful venture markets in the process of establishment of our own for preventing market liquidity risk. Besides, this dissertation suggested taking consideration of the latest enterprise management theory and framework, legalized risk alertness system, legalized enterprise risk manager system, and legalized director's risk prevention obligation in the process of establishment of the risk prevention legal system for the listed companies of our Venture Market.This dissertation opined to establish the effective risk prevention legal systems so as to protect the investors'interest and to make the Venture Market become a real capital platform for the high-tech and fast growth small and medium enterprises. This not only suits the needs of capital of the small and medium enterprises and realizes their expected targets, but also perfects the legal system of capital markets of our country.