On The Relevance Standard Of Inside Information

This thesis focuses on analyzing the relevance standard to define inside information, mainly discussed how to define the inside information in the practice of regulate the insider trading with the relevance standard, which is an important legal concept. The relevance standard is one of essential standards to define the concept of the inside information, which means it is essential for the liability of insider trading as well. Nevertheless, as to the two different legal ideas recognized and developed in different countries, the elusive concept of the relevance standard various sharply, which suggests the foresight of this thesis.In summary, the thesis comprises four chapters as following:Chapter2:It is concerned with the general introduction of some concepts relevant to inside information and the relevance standard. The importance of the relevance standard issue is revealed. The fundamental concepts are vital to this thesis, such as the classification of information in security market, the standards of inside information and the concept of the relevance standard.Chapter3:It introduces the legislative provision relating to the definition of inside information in certain countries and regions, which include U.S. EU and mainland China. After making a comparative study on the provisions, the author founds out the difference between U.S. and other western countries, which is the uncertainty of the scale and quantity of inside information. This makes the first creative and unique part of this thesis, which also is used to solving the problems in relating issues.Chapter4:It mainly analyses the current status of the behavior of using unpublicized information in mainland China. Nowadays, the legislators have realized its harm, but they conclude it as a new crime, instead of treating it as a new aspect of insider trading. The author points out the defect of the current criminal law and put forward the perspective that the behavior of using unpublicized information should be punished as insider trading.Chapter5:It mainly analyses the current status of the behavior of using nonpublic information inside the government. It introduces the STOCK Act of U.S. and the disputes on this Act in America. The author concludes the defect of both the American and Chinese securities laws and analyses the possibility of regulating this behavior as insider trading in China. The introduction to the STOCK Act is the second creative and unique part of this thesis.In the conclusion, it restates the significance of inside information, particularly its relevance standards, emphasizes the hysteresis of the law in regulating relating behaviors.The thesis includes both theoretical and practical analysis. The author studied thoroughly laws, cases, theories, statistics and news not only from Chinese legal system but also foreigners. The following methodology has been used in this thesis:(1) case study;(2) comparative study;(3) inductive reasoning study.