The Theory and Court decision of the Insider Trading- based on the Supreme Court decision

  • 陳 昭成

Student thesis: Doctoral Thesis

Abstract

Republic of China's ban on insider trading is inherited from the US law The US law considers insider trading to be a market fraud a speculative act in the stock market a risk-free unfair competition and an act that harms the public interest From the sight of Republic of China's practical views the reason for prohibiting insider trading is that all market participants should obtain the same information at the same time which called The Equal Access Theory Anyone who uses it first will violate the principle of fairness Therefore if the internal person of the company trades with the ordinary investors in the stock market before the internal news released the act itself has already destroyed the fairness of the trading system of the stock market and belongs to a criminal behavior Furthermore it is also bad enough to destroy the trust of general investors toward the stock market I believes that if anyone in the superior position or other special relationship who knows the company's internal news in advance buys and sells the company's stock before the news is disclosed the damage to the trading order of the stock market and the degree of damage to the counterparty's property is obvious Therefore in order to "maintain the order of economic transactions and the soundness of the stock market" I advocates that "internal transactions should be strictly prohibited" and "external traders should be severely punished "
Date of Award2019
Original languageEnglish
SupervisorTse-Shih Wang (Supervisor)

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