A Study For Civil Action Of Misstatement In Securities Market

Security market is an information market, the operation of securities market is the process of information. It is the information that lead the financing to the department of every entity of the social, thus complete the resource distribution function of the security market. The key of market efficiency is how to get information sufficiently, truly and symmetrically. The development of a successful security market must depend on the practical protection of investors and the confidence of them. The civil action of security market is a very effective way to protect investor's interests. On January 15th in 2002 , The Supreme Court enacted the "Notice about Accepting the Case of Misstatement in Securities Market". Later The Supreme Court enacted the "Provision on inquisition Misstatement in Securities Market". These two provisions create an explicit private right of action. Civil liability for damages is established. These provisions set some in detail the liabilities arising from misstatements. Based on these provisions , we can litigate when the paper in public contain material misstatement. But these provisions are not all-round, and there are many problem in the course of the civil action. This article refer to the system of American civil action of securities market, and this article also discuss the important document, the causality, the standard of the important information, the lawsuit way of the civil action in securities market etc. On this basis, this article bring forward some advice to perfect the civil action system.