Research On The Definition Of Insider Information

Insider trading is the multiple phenomenon in the securities market. And it violates theprinciples “fair, just and open” of the securities market, harms investors’ benefits and affectsthe confidence of investors in the securities market; at the same time, it can also cause theterrible fluctuations in the economy, and hinder the healthy and orderly development of thewhole market economy. There are a lot of different information in the securities marketincluding the insider information. Insider information may not certainly lead to insider trading,but the happening of the insider trading must relate to the use of insider information.Therefore, as the premise of insider trading, the judgment of insider information becomes thekey point.Basing on the analysis of the “Disclose Information Event” of Youyan semiconductormaterials Ltd.., this paper tries to study some problems about the definition of insiderinformation, the compositions of insider information Judgment and so on comprehensivelyand systematically. And the purpose is to be helpful to insider information identificationtheory and legislation process of China.This paper is divided into three parts:The first part is the introduction to the basic facts of “Information Disclose Event”, andthe next talk comes to disputes in the event whether the information disclosed has relevance,non-public, materiality and specific or not and the author’s thoughts which are the rumors insecurities market and security analysis and so on.In the second part, the author makes analysis of the disputes and the author’s thoughts bymeans of our and foreign relate theory of insider information judgment and legal regulations.The third part discusses the author’s legislative proposals for the current law which arefrom the results of the two former parts’s analysis.