| Securities fraud behaviors include insider trading, market manipulation, swindling the customers, false behavior of stating in securities issue. Dominating stock cheatings are insider trading and market manipulation. Because of asymmetric information, insider trading and market manipulation exist in security markets. The paper studied the behavior of game of insider traders and other dealers in the base of individual information under asymmetric information. After empirical analysis, some results were got. Insider trading raised the average price and price volatility. The information used by insiders was actually essential and the insiders obtained large abnormal returns. So insider trading should be prohibited in Chinese security markets.The behavior of game between institutional investor and individual investor can be validated by analyzing the case of market manipulation .In analyzing the factors of the degree of manipulation, we can find the degree of manipulation can be interpreted by how long the stock was manipulated. And high concentration ration of equity, the number of total accounts in manipulative periods, the average stock makeup, the rate of change of yearly-average return all can interpret the degree of manipulation. Otherwise the stock tended to be manipulated with few liquid equity and low turnover ration. In the last part, the paper discussed how to strengthen the supervision measure and how to reduce the degree of the insider trading and market manipulation. |
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