On Causation Of Tort In Securities Market

Causation of tort in securities market has plagued courts and scholars more than any other topic in the law of torts because of its particularity. Starting from analyzing difficulty encountered by theory of causation of tort law in securities market, the article introduces the relevant theories and practice in America in detail for the purpose of improvement of our system of civil liabilities of securities frauds.The article is composed of three chapters.Chapter one introduces theory of causation in tort law simply. It is axiomatic that before liability can attach to a defendant a causal link must be established. Deciding whether the requirement of causation has been satisfied may present two steps named factual causation and legal causation. Factual causation is decided with the method of application of but-for test except for some special types of causation such as cumulative causation, combined causation, alternative causation. Legal causation is decided in accordance with theories such as direct consequences theory, reasonable forseeability theory, the adquency theory, the scope of rule theory.In the system of civil liabilities of securities frauds, to win lawsuit, the plaintiff have to prove not only that he relied on the fraudulent activities of the defendant, but also that fraudulent activities caused the securities exchange and the damage. But it is very difficult for the plaintiff to undertake the burden of proof. So, Causation of tort in securities market should be improved.Chapter two introduces the theories and practice in America in detail. In the USA, there are two different types of provisions that may give rise to civil liabilities. The first type is a provision creating an explicit private right...