On The Cognizance Of The Insider Trading

As a typical conduct of securities fraud, insider trading has been accompany with thedevelopment of China securities market. With the constant improvement of the capital marketand the strengthening of global economic integration, the company merger, acquisition andreorganization has been continuing, at the same time, insider trading cases occur frequently.Through analysis about Zhongshan insider-trading case which occurred in2007and sentencedin2011, I try to do some studies on insider trading that affects the healthy development ofsecurities market and cannot be avoided. For the healthy development of securities market,make some beneficial exploration for solving the problem.This paper is divided into three parts:Part I introduces the case briefly and concludes the controversy points. Firstly this partbriefly introduces the Zhongshan insider trading case and the verdict. Aiming at this case, Ipropose three controversial points:1, in the case, are the offenders belong to the Subject ofinsider trading.2, Can the information in this case be regarded as inside information.3,Arethe offenders’ behavior insider trading behavior.Part II applied the theory related to insider trading, combined with the details of the case,defines the insider information, insider trading and insider staff behave precisely, anddiscusses them respectively. On the definition of the insider information, firstly, domestic andinternational legal provisions on the definition of insider information and relevant theories areexpounded, and discuss from the perspective of Non-public, significance, clarity andrelevance. Then we analyze whether the information is the insider information combining thespecific circumstances of the Zhongshan case. On the definition of the insider staff, we firstdescribe the theory and the institution, then discuss the definition and classification of theinsider in different countries and regions, at last, we analyze whether the large number ofpeople in this case belong to the Insider. In terms of definition of insider trading, followingthe previous writing ideas, we analyze the insider trading behavior in theory and theinstitution, and discuss "using insider information" the connotation, finally I make specificanalysis on behavior of the subject in this case.Part III through the theoretical elaboration and case studies, summarize the deficienciesin insider trading identification and make corresponding improvement paths. This sectionelaborates concretely from the definition of insider information, insider trading subject, and insider trading behavior, corresponding to part II. I talk defects and make correspondingrecommendations.