On The Constitutive Elements Of Securities Fraud Damages

The main purpose of the securities exchange act is the development of the nation economy. Under the condition, the act not only should regulate the action of the participators in the market properly and diminish the illegal behavior, which include fraud, tunneling, insider dealing and administered price in order to protect the right of the investors, but also provide the reasonable remedy method to the investors. Therefore, it can be the basis of the development of the security market.Things are always contrary to the reality, the rapid development of the economy in Taiwan area, which prompts the securities market, leads to the active and frequent exchange. While the illegal cases which are related to the fraud of the security in the security market increase year by year and with the enlargement of the injured investors and the amount, the cases of the fraud grow up every year.With the development of the condition, it is difficult to win the case of the fraud of the security. There are some reasons; the main problem is the constructions, which play the important part. The construction includes: first, the provision is equivocal; second, the causation is equivocal; third, the relationship of the claims is equivocal. Under the condition, there are few opportunities forth investors who are always in lower position to realize the compensation for damage. It in fact, the result of the development of the securities market is contrary to the legislative aim of securities exchange act.As far as we know, US is the nation which has the most advanced security law in the world and its anti-fraud security legislation is believed as strictest and all round.US make use of the legislation and the case combined to different securities fraud cases. US not only establish the basis of the claim of compensation for damage, but also adopt the theory of causation, which includes causation of the exchange and causation of damage. So, this practice is so classical that many countries set it as the reference frame for their securities legislation.