| Insider trading is generally found in the securities market, insider trading is a kind of illegal fraud behaviour, specifically some insider staff with asymmetry information, the master will affect the prices of the securities information to be applied, the insider trading in order to gain unfair profit. It not only against the characteristics of fair trade of securities market, but also makes the majority of ordinary investors suffered great loss, besides it hinder the development of China’s securities market healthy and orderly. At present, due to the internal and external factors, the insider trading behaviour are not forbidden, nature and characteristics of the Insider trading itself is in a dynamic process of change. In the face of insider trading, the government must make strict legislation, strengthen supervision, and curb the generation of insider trading behavior fundamentally. In this paper, first of all, it introduce the concept and characteristics based on insider trading,combined with the relevant theory of insider trading, and explain the causes and hazards of insider trading. On the basis of these theories. This paper selects the classic Desai battery insider trading case as a case study, in addition, from the financial situation, the reorganization of assets, illegal buy and sell stock take advantage of insider information these views,the paper analysis the whole process of the insider trading, and then through analysis of this insider trading case, it further point out present situation of China’s insider trading nad the existing problems to be solved Finally, the paper give suggestions about how to avoid the occurrence of insider trading, mainly from foreign anti insider trading experience for reference, for example the establishment of early warning in advance, monitoring in progress and investigating afterwards and then combine these in a integral regulatory system,besides increase the punishment on insider trading.so a effective disciplinary mechanisms can prevent insider trading are established.We need fully studying and learning successful experience from Western, improving function of government, publishing the Illegal behavior based on the situation of our country, ensure that the interest of investors are protected,so we can establish a healthy and harmonious security market. |
