Research On Computation Of The Disgorgement Under The Insider Trading

In recent years, insider trading has become the main criminal acts in securities market, and it is always the focus of the academic research. But there is little research on the disgorgement of the insider trading, and many difficult problems in the law enforcement process. Because the disgorgement affects the administrative penalty and criminal liability for the investigated, the research on it is so important. Therefore, for the deficiency of the current study and the problems in the law enforcement process, overseas theory and practice of the computation of the disgorgement under insider trading are studied in this paper. The main research method of this paper is case study. With collecting678overseas cases and studying157cases which describe the disgorgement in detail, The definition of the disgorgement、gain resulting from the offense、market absorption approach and determination of the key parameters etc. are summarized from overseas practice; According to the trend of development, a prospective study of abnormal return from insider trading is also involved in this paper. Several foreign methods such as potential econometric disgorgement and potential probabilistic disgorgement are introduced and are used to calculate the disgorgement of several insider trading cases. Then it concludes the advantages and disadvantages of these methods. Through the above comparative study, this paper provides workable principles and methods for the computation of the disgorgement under insider trading in China.