Research Upon The Tort Damages For Misrepresentation In The Securities Market

The system of information disclosure is the basis of the stock markets, also is the basis of the "tree fair" principles and the safe guard to protect the investors' benefit. Therefore, most countries and regions pay much attention to the system of information disclosure and focus on the establishment and implementation of the system of information disclosure. Chinese stock market has made great achievement in the system of information disclosure, and primarily establishes the system of information disclosure. However, it is not perfect and the actual situation is not satisfying. The system of the tort damages for misrepresentation in the securities market is the important mechanism to protect the profit of the investors .Our securities law system has prescribed the civil liabilities for misrepresentation,but it's only a proclamation and difficult to put in practice. The harmful consequences of misrepresentation act in the securities market are small claims and large scale,the separate action and joint action don't adapt to this kind of case.America is the most developed country for the securities civil legislation and practice. Its securities law rules are self-contained,and it has fathered the theory of fraud on the market to presume the causality and the method of calculating the damages in the judicial practice. All of these have alleviated the burden of producing evidence,then the investors should resume their right by exerting their civil right of relief. Furthermore,the efficiency judicial procedure of the securities class action carry out the profit of the investors.First of all,this paper compares the requirements constituting the tort liability for misrepresentation in the securities market and litigation forms between America and China so as to explore the deficiencies in the design of our system of the tort damages for misrepresentation. Then, this paper puts forward the advices of correlative system according to our securities markets' conditions. Upon the aspect of the identification of the tort liability for misrepresentation, the ideas as follow: Firstly, we must consummate the information disclosure system so as to identify the misrepresentation act; Secondly,civil liability for misrepresentation should apply fault-assumed liability,as to the issuers apply no-fault liability in order to alleviate the investors' burden of producing evidence; Thirdly, in the active market we should apply the theory of fraud on the market to presume the causation;Fourthly, we should establish the calculating method of damages according as the characteristics of risk in our securities market. Upon the aspect of the litigation form,we must improve on our representative action in the way of register of right and qualify for representative capacity so the shelter of the investors' profit could come into truth.