A Study On The Informed Trading And Market Manipulation Under Information Asymmetry

Due to information asymmetry in the stock market and other reasons, there are a large number of unusual transactions, such as informed trading, market manipulation and so on. However, these irregularities are often very subtle, such as the bankers will make use of many accounts for stock transactions to hide their true intentions, and make a very large number of transaction data.The insider manipulation is a dynamic speculation between information manipulator and uniformed trader. The superior information traders manipulate insider information, get illegal benefit and aim at risk shift.With the development of securities markets, there are more and more countries which began to enact laws prohibiting insider trading and market manipulation in the world, but some behavior always get out of the line. It can be said that insider trading and market manipulation has been accompanied by the development of securities markets. In China securities market, from April 2001 to December 2009 period, the CSRC and the judicial system has an open investigation of stock price manipulation cases which number reached at a total of 41 and most of them are related to information breaches and stock price manipulation.This article uses the traditional writing technique——from proposing the question to anglicizing question and to solving the problem. The entire content can be divided into three parts:The first part——Question. It mainly introduced the research background, research significance, research technique, exploration and insufficiency of this articleThe second part of——Analysis. The second chapter firstly defines the relevant concepts, and then sort out the existing literature. It is divided into two aspects:First, the theoretical research about market manipulation behavior in informed traders, and second, he theoretical research about informed trading in market manipulation. The third chapter mainly analyzes the knowledge of China's securities market trading and market manipulation status and characteristics, and information asymmetry on the impact of China's securities market. The fourth Chapter by collecting cases of informed trading and market manipulation in recent years,, extracting the relevant data to do empirical analysisThe third Part——Conclusion. According to research findings and China's securities market practice this paper put forward the corresponding policy recommendations for China's securities market regulation...