The Insider Trading Civil Liability System Of Reflection And Reconstruction

In the introduction part, I explained the damage would be caused by insidertrading, both in macro and micro level. For one thing, it will harm the capitalmarket and the rules of market economy, for another, it will impair legalrelationships under the private law. So every legal system choose to ban this kindof behavior in some way.I carefully explained the civil liability which would be caused by insider tradingbehavior in the first chapter. At the very beginning of this part, I concluded currenttheories about the foundation of this liability, analyzed disadvantages of all thesetheories, explained the real reason for the contradictions appear and point out thatinsider trading would not cause the civil liability under the securities law.However, there are not just one kind of legal relationships should be protected inthe law. Even if insider trading didn’t impair the relationship between investorsand inside traders, it does devastate the fiduciary relation between the companywhich issued the securities and other subjects.In the next part, I redefined the fiduciary relation. Then I discussed the keycomponents of the liabilities of insider trading. One of them is the exists offiduciary relationship, the other is the misbehavior of insider trading. I alsoanalyzed the importance of a non-requirement factor of damage.In the conclusion part, I emphasized that only by use civil liability, it is impossiblefor us to regulate insider trading in a good effect.