On The Insider Trading Of Security

The insider trading in securities takes place as an accompaniment of the security exchange. It is abhorred ever since it appeared. Many countries have taken various measures to prevent it for several hundred years but got little result. And so how to prevent the inside trading and try to control it within a minimum limit is still the direction that countries and people are taking effort towards. This article gives a general discourse of the inside trading. In the chapters, it introduces the basic theories of the insider trading including the definition, the constituent prerequisites of the definition, the reasons to regulate it and management and the Chinese Wall system. It also introduces stipulations about inside trading in the Securities Law of our country, and brings about some legislative proposals from the writer. In the first chapter, the writer starts the topic with the general theories. From the definitions made by academicians from different countries, the writer lists the characters of the insider trading: dealing actions belong to dealers; low-down information predicates plenty of profit; the action target for avoiding harm. Thus followed by the analysis of the four composing parts of the insider trading. The analyzing borrows much from the American and Japanese laws and existed cases, explain the harm and the degree, and cite guide theories. The second chapter aims at the different insider trading laws in various ~ii ~L) countries, their information publicize system, penal and civil and adninislrational punishments. Helped by the analysis, prove the disadvantages and advantages of them. Also in this chapter the writer uses lots to introduce the international supervision and China Wall system, discuss the possibilities and feasibilities. Chapter three introduces basic factors of Chinese Security Law, comparing with the second chapter the author writes the advantages and disadvantages of the existed law Also comparing with the original Temporary Stock Issue and Trading Regulation (1993 .4.22) and lists the advantages. In chapter four the author writes own opinion and suggestion to the Chinese Security Law, which includes: some civil duty system and China Wall. The writes especially writes suggestions to the Chinese Security Supervision Committee about the method of defining insider trader and perfecting its authorities of office.