Comparative Study On Characteristics And Legal Liability Of Insider Trading

China's development on a highway, coupled with the expansion of its securities market, has led to increasing pressure to strengthen insider trading regulation. This paper will focus on the spread of one particular type of regulation aimed at developing deep and liquid stock markets around the world, specifically the prohibition of trading on inside information. With the comparison on prohibition of trading on inside information, among U. S., EU, Japan and Taiwan Area, this paper will focus on the subject to the prohibition, the definition of inside information and legal liability.The first step, in Partâ…¡of this paper, is to describe the explosive growth which has occurred in the number of nations whose laws prohibit trading on inside information concerning stock. Next, Partâ…¢of this paper looks at some of the principal variations in the specific prohibitions that nations have enacted. Partâ…£of this paper then compare the legal liability of insider trading in the nations. Finally, Partâ…¤concludes this paper by turning the spotlight back on China, and asks whether we take efficient action on insider trading and what we can further do to strengthen the prohibition under the spread of insider trading prohibitions abroad.