Study On Damages For False Representation Of Securities Market

This paper analyzes the judicial status of civil compensation cases on securities market incurred by false representation by using empirical methods,and aims to study the limitations of false representation's legislation,and then propose targeted improvements.There are four chapters in this paper.Chapter? discusses the theoretical basis of false representation.It mainly focuses on the connotation,type,and nature of false representation.Furthermore,it focuses on the analysis of why the investors who suffered damages due to false representation fall under the protection of the tort law,and the false representation invade which rights of investors.Chapter ? analyzes the number of false representation in China,the focus of disputes in judicial judgments,and the investor compensation ratio,and then concludes the shortcomings of the Certain Provisions of the Supreme People's Court on Trial of Civil Compensation Cases Arising from False Statement in Securities Market(hereinafter referred to as "Trial Provisions"),which lay the foundation for proposing targeted improvements of the civil compensation rules for the false representation in China.Chapter ? analyzes the difficulties in the civil liability of false representation,including the causation recognition and the loss recognition.Due to the particularity of securities trading behavior,China's traditional causation recognition theory is difficult to solve the problem of causation recognition.The US securities market has developed.Compared with legislation of other countries and regions in the world,its legislation about false representation is more complete.Therefore,we can learn from the legislative experience of the United States and divide causation into transaction causation and loss causation.Different recognition rules apply to different types of false representation.As for the part of the loss recognition,this paper first discusses the method of calculating the investor's loss in the "Trial Regulations"-the shortcomings of the transaction price difference method.Furthermore,it compares and analyzes the advantages and disadvantages of the three methods of calculating the investor's loss in the current judicial judgment in China,and draws the conclusion that the loss of investors calculated by the mobile weighted average method is the most fair and reasonable conclusion.Finally,this part hopes to improve the legislative rules of civil liability for false representation in China's securities market by seeking the legislative experience of calculating losses of investors in the United States and Japan.Chapter ? mainly focuses on the shortcomings of the "Trial Provisions" a nd proposes targeted recommendations from the perspective of balancing the int erests of investors and those people who made false representation.Specifically,firstly,by re-enacting the influence of different types of false representation investor trading decisions,the purpose of determining whether there is a causation between the false representation and the investor's loss.Secondly,expand the scope of compensation for investor's damages incurred by false representation.What's more,make the identification rules of the threeimportant points of the “Trial Provisions” more concrete.At last,improve the calculation rules of systemic risks and provide diversified methods to calculate investor losses.