Study On Legal Misrepresentation-Balancing System

Applying the self-organization theory including System Approach and Dissipative Structure, combining the current situation of the securities markets, researching the legal misrepresentation-balancing regulations system, this article is to demonstrate the importance of the legal balancing mechanism and to modify specific regulations for the sake of amendment to the legal misrepresentation-balancing regulations system in the securities law system. It will help strengthen the relevance and manipulation of correlative regulations, and low the degree of information distortion caused by asymmetry.The first chapter of this article is the analysis of misrepresenting behaviors. By investigating the history of the misrepresentation, the writer summarizes the five basic forms of the misrepresentation ,which include misstatement, omission, misleading statement, wrong forward-looking and illegitimate disclosure. The writer also analyses the specific behaviors, the behaviors' features and current changes of each of the above-mentioned misrepresentation forms. These five forms constitute the objective prerequisite of misrepresentation. Analyzing and defining these forms can establish the foundation to construct effective legal balancing regulations system.The second part of the article is to expound the principles and methodology of constructing correlative regulations system, which is finished by analyzing the value of the legal misrepresentation-balancing regulations system. The principles include objectivity & rationality, comprehensiveness & systematicness, economic feasibility & development. The part also analyses the features of dissipative structure in securities markets.The third part is the center of the article . This part is mainly about how to modify the legal misrepresentation-balancing regulations system considering current economic conditions by analyzing the constructing of the specific correlative regulations. The regulations construction is the foundation of the regular operation of the securities transaction system. It is the indication of the negative entropy flow for maintaining the opening of securities system. Furthermore, it is the base point of the article researching the legal misrepresentation-balancing regulations system.