The insider manipulation is an dynamic speculation between information manipulator and uniformed trader. The superior information trader manipulate insider information, get illegal benefit and aim for a risk shift. Although the insider manipulation is prohibited in most country's legislation, it still doesn't clear away both in a mature capital market and a emerging market. Certainly it becomes more active and it is an evidence that the cases of ZKCY and YAKJ come forth.The eradication of insider manipulation can focus theoretically on two aspects: enlarging the cost of manipulation and improving the ability of manipulated stock's discrimination. Professor Lang has suggested that shifting the burden of proof and collective litigation should be applied on our securities supervision. Professor's advice may be theoretically effective, meanwhile the amendment of law will need a long time in the procedure. Therefore, it seems that the choice of improving the ability of discrimination deals with concrete matters relating to work in reality. That's why this paper chooses the perspective of market's reaction... |