Study On The System Of Damages For Misrepresentation In Securities Litigations

Securities market came into being late in our country,while it is progressing fast. The past 24 years,the securities market has gotten vigorous development.At the same time,it appears many misrepres entation events and most investers suffered great damages.Therefore,we need establish a perfect legal system to suppress misrepresentations and protect investors in securities market.However,the securities litigations of our country have many deficiencies.The dissertation focuses on the legislative defects of chinese securities laws and the problems of judicatory practices to find reasonable ways to perfect the system of compensation for China’s securities misrepresentation civil damages.The dissertation is organized in a logical way with three chapters as well as the perface and the conclusion.Chapter I delves the theory foundation of misrepresentation civil damages,including the misrepresentation’s essence,connotation and so on.In addition,this chapter argued with the similarities and differences of typical legislation modes in the civil liability for misrepresentation between the two legal systems a.By analyzing, we can get some conclutions,including that the misrepresentation’s nature is a pure economic loss,and the theoretical basis for compensation are asymmetric information,moral hazard and adverse selection.Chapter II is the most important part of the thesis,which anlyzes the composition of the civil compensation liability and tries to solve the significant problems for the judicatory practices.In this section,the chapter focuses on the terms of the standard of materiality,fraud on the market theory,the presumption of reliance and so on,which are used to analyze elements of misrepresentation civil damages.With becoming pressing problems in our current securities law and judicial interpretation,by the comparative discussion on other countries acts,we can provide some better solutions for legislation of China.Chapter III analyzes the defects of our current Securities law about the way to confirm the scope of compensation and the computational methods of invester’s damages.By compared with U.S and Japan,the scope of compensation is not enough wide and the computational methods are not reasonable according to the relevant law in our country.Being based upon current norms, they probably cannot maintain maximum balance and protect the benefits of the investors. The dissertation attempts to put forward some reasonable suggestions about these problems to perfect the system of damages for misrepresentation in Securities Litigations.