An Analysis Of The Legal System Of Multi - Level OTC Equity Market

Multi-layer capital market could be divided into the main board market，GEM，the third board market，fourth-board market by corporation size,quality, degree of risk, information disclosure, trading patterns. Fromthe present situation of our country, the main board market and the GEMbelong to the exchange market. The development of the OTC market has shownits special different quality. With the beginning stage of OTC market,we faced to both new developments and new problems. It’s a great advantageto save social and market cost by the suitable frames and adjustment ofOTC equity exchange market. It is advantage to our country’s economictransition and development that establishing scientific OTC equityexchange market, helping the medium-sized and small enterprises’ equityfinancing and trading, linking to the civil finance. The born and divisionof the multi-layer of OTC equity market was a part of multi-layer capitalmarket system itself. The division was promoted by the invisible hand ofmarket, but not man-made frame. Now there are some problems lay ahead ofOTC market as laws and regulations unsound, contradiction between rulesand reality. Because the rule of Security Law that the equity trading andownership unprotected. This paper tries to propose design mind ofmulti-layer OTC market and suggestion about amending the law systemthrough researching on law and market factor of the reason about the marketdivision, contrasting the present situation and problems of foreignmulti-layer OTC capital market. Organize the basic logic and thoughtsthrough our present multi-layer OTC equity exchange and market frameproblems and new developments.The articles finally consider Multi-layer capital market is the marketdemassification and specialization inevitable trend of development. Thiswave of development in the OTC market, the country due to various factorsown special circumstances, different times, advances in technology, thepopularity of the Internet, etc., will appear different from thetraditional U.S. OTC equity market many features and qualities, but alsoon the experience of study and research should be multi-level capitalmarket, the United States and other countries successful case of failure, the scientific exploration of a multi-layer OTC market development path.