Securities Investors Protection Path

The emergence and prosperity of financial markets are the inevitable result of the high development of market economy. Today, the investment behavior of economic agents is not limited to physical market, investors' favor to the stock market has not only been its injection of energy, but also become an integral part of the protagonist. However, prosperity and development of securities market brings investors not only the cheers of the miraculous, but also lingering haze in their hearts even in the dark period of stagnation. The complexity and variability of the securities market gave the investors the investment risk, in the stock market trading practices of countries, the investment risk and economic losses that investors may face are often necessary for more than a reasonable limit. Insider trading of listed companies, false statements, unfair trading, as well as managers and controlling shareholders wantonly violated instances of investors has been widespread seen in the securities market, even in highly developed U.S. securities markets, it is difficult to avoid the tragedy of Enron. This is not only an important group, but also a vulnerable group. Whether to protect the stock market investors, offer them a positive, healthy market environment is not only a direct impact on the development prospects of listed companies, but also beneficial to the entire stock market. Investors is important, therefore, need to be concerned about. In the stock market in which information is wealthy, investors are in a weak position, especially minority investors are limited by their expertise, cognitive ability, under the guise of equality in the form but there is a real weakness of the crisis. Investors are vulnerable and need special protection. The protection of investors in the stock market is the subject of legislation in every country. There are market path, the government path, the law path in securities investor protection from a macro perspective, which have irreplaceable advantages as well as inevitable shortcomings. Market mechanisms to spontaneous, flexible allocation of resources that can respond quickly to the existing problems, but failure can not solve the problem of endogenous; government regulation for the use of administrative power for the market supervision and management of macro-control and to compensate for market failure defects, but can not overcome the limitations of regulatory failure; rule of law as the stock market system security, is a market failure, regulatory failure of the "medicine", but not the cure-all "panacea", the rule of law is not omnipotent. Therefore, the three paths can not be replaced, we can maximize the protection of investors to the stock market, if we play to the mechanism of their own advantages and cover their shortcomings. Throughout the world, government regulation is in still relatively strong position especially in China's securities market, and the administrative over-regulation is an important reason for poor investor protection. In fact, the optimal path of investor protection should be the market mechanism, government regulation, the trinity of the legal system, each path has its own unique features, which can not be replaced by the other, In our securities market, the government should not over-occupy the path of market mechanisms and the field of legal protection. Finally, the author suggested that the-three-paths synergetic investor protection system should be established and developed in future.