A Study On The Definition Of Insider Information In Insider Trading

Insider trading becomes more and more complicated with the development ofsecurity market, which makes control on insider trading more difficult. Insider tradinggenerally contains three elements: the insider, insider information and insider trading.Insider information is the basis of insider trading. If there is no insider information, itis hard to talk about insider trading. This thesis focuses on analyzing the criterion ofdefining insider trading. I hope that it can provide some help for governing insidertrading. This thesis is divided into three parts: introduction, body and conclusions, andthe body is composed of four chapters.ChapterⅠdiscusses the conception of insider trading, and put forward the cornelement: insider information. I make a summary on the domestic and foreign insiderinformation provision, which provides theory foundations for next.ChapterⅡlists and analyses the domestic and foreign insider informationprovision. I select four representative foreign countries, they are EU, the United States,France and Japan. And then list the provision of Taiwan, Hongkong and mainland. Atthe end, raises the four characters of insider information: significance, confidentiality,certainty and correlation.ChapterⅢexpounds two difficulties on defining insider information, which arethe criterion of significant and confidential. Mainly discusses the subjective and objective standard, reasonable investor and price sensitivity of significance. And alsoanalyses the substantial public standard and formal public standard of confidentiality.Through compare the advantage and disadvantage to provide a reference for ourcountry.ChapterⅣanalyses the situation of insider information definition in China. Thendiscusses the disadvantages of our country and put forward some feasible suggestionsfor remedying insider information definition. I think we can take measures in fouraspects: first, to establish specific criterion of correlation; second, to establishcertainty standard; third, to adopt formal public standard with substantial publicstandard; fourth, to clear the criterion of significance.