A Study On The Legal System Of Private Securities Offerings

Non-public Offering of Securities has already turn up in China, but our country still has none related law in this area, and the Non-public Offering of Securities even hasn't been defined officially, so the reality is that the Non-public Offering of Securities is without any official status but existing as a matter of fact. China is now Strongly Promoting the development and integrity of the fund market, as the private security is really an important way of financing, we have to set up a sound system and bring the emerging way of financing into the security regulation system.The article introduce the concepts of Security, private offering of Securities and public Offering of Securities, analysis the legal value of private securities offerings, and the advantages of private securities offerings over public offerings using economic theories. The mainly part of this article mainly on structuring the Chinese private securities offerings system through study of private securities offerings system in China and analysis of private securities regulation systems in the USA and Taiwan. As this is the first time for China to construct the system of private securities offerings, and there are lots of problems of Chinese securities market, so the system of Chinese private securities offerings should mainly protect the interest of investors. The definition of private securities offerings should be as clearly as possible, in order to protect investors' interest and the Chinese securities market. There are two kinds of inventors in the private securities market, which are accredited Inventor and non- accredited Inventor. And different inventor needs different protection.Law of securities has been carried out in 2006, the fund market is become more and more important, and the rule of private securities system in the USA and Taiwan can give us lots of suggestions. Now it is a good opportunity for us to construct the legal system of private securities offerings. To change the reality of the Non-public Offering of Securities is without any official status but existing as a matter of fact.