Research On Financial Fraund In Securities Market

As the security market developed fast in the21th century,financial counterfeit in security is common. Companies such as Enron Corporation, Worldcom and Xemx were all involved in. These financial scandal made the whole world capital market under the darkness of financial counterfeit, and caused a terrible crash in the New York stock mar--ket.Arthur Andersen was one of the Big Five and its bankrupt made American investors and even the world investors lost sense of security for this. And so was in the Chinese security market. Since the financial counterfeit cases of "Yin Guang" Xia and"LanTian" had been disclosed, the financial counterfeit is getting common. This damages the credit of capital market and public investors’interest,and also goes against the positive develo-pment of CPA and caused bad influence on the development of security market.There--fore identification and prevention of financial counterfeit are important in theory and practice.This paper states the related concept and characteristic of financial counterfeit, and then analyses the cause of financial counterfeit, summarizes the damage of financial counterfeit. This paper also concludes the methods of financial counterfeit and digs out the underlying reason of it by giving examples of financial counterfeit cases from domestic and overseas. It is invisible to see that any methods of financial counterfeit executes only though the disclosed of information and financial statement. So we should make the information and financial statement under supervision, broaden the ways of social supervision, increase the punishment and the cost of financial counterfeit, develop the honesty and moral of the accountancy profession and the truthfulness of the information. Everything needs time to be perfect and so does the security market. This paper hopes that more and more people are in concern and inspection of the healthy development of security market, and proposed the solutions of preventing financial counterfeit. So we can create a favorable environment for the investors.