Government Regulation And Stock Market To Cultivate

From the historical point of view, development and supervision of the security market have always gone simultaneously. That is to say, without supervision, especially that from the government, there would not have been healthy growth of security market today. The goal of govermnent supervision is to make the security market develop healthily and in turn to increase economy. But the effect of government supervision may be far from its previous aim if the government underestamates the importance of the cultivation of the market. The traditonal economic system of our nation is plan system. The government is used to interfere economy. So it tend to underestimate the function of the market抯 self-regulation. Therefore, it is important to study how to cultivate and develop market during the cause of the supervision and how to utilize market self-regulation system to strengthen the government supervision. To take the supervision of stock macket for instance and to use game theory, the thesis studies why the effect of the supervision during the cause of the stock going on the market is not good. It is pointed out in this paper that government supervision can抰 replace market抯 function and that the good effect only appears when the government supervision and the market抯 cultivation develop simultaneously. So the supervision organization should replace their sense. They should think highly of not only avioding wrong actions but also supporting right actions and strengthen the stock market抯 cultivation.