Research On The Civil Liability When Misrepresentation And Insider Trading Impact On Security Simultaneously

Misrepresentation and Insider trading pay wide and thorough impact on securities market. With the rapid expansion of securities market and the lag of law, the two security cheat actions are attracting more and more attention from people, because they not only harasses the order of security market, but also encroaches on investors’ economic interests. The punishment of Criminal Law and Executive Law save the order of securities market be harassed by Misrepresentation and Insider trading, but the economic loss caused by them to investors are difficultly protected with the faultiness of Civil Law In academic world, civil compensation of Misrepresentation and Insider trading are studied and discussed for many times, especially the civil compensation of them. But for the civil liability when the two actions happened simultaneously is barely discussed. Even though this special condition are happened occasionally, compared to any one security cheat action, the impact caused by it are wider and more complex, so it can’t be ignored by us. When the two actions happened simultaneously, how to recognize civil liability and how to realize it by litigation not only firmly concerned with the benefits of investors, but also the healthy and stable development of the securities market in China. Therefore, this paper aims to analyze the two questions based on existing laws and related academic views and hope to provide some advices for judicial office and academic world.The first part discussed the civil liability property when Misrepresentation and Insider trading happened simultaneously. Firstly, this part discusses the civil liability property of the two actions respectively and concludes that they both are tort actions. But they are different from the specific action and the right they violated. When they happened simultaneously and caused common damage, all the conditions are meted of the tort by more than one people without agreement. Considering the particularities of the two actions, the case is a special tort by more than one people without agreement.The second part discussed the subjects of civil liability when Misrepresentation and Insider trading happened simultaneously. Recognition of subjects are precondition to recognize civil liability. This part introduces the subjects of the two actions ruled by law and differ them from structure and scope, then this part recognizes the subjects when Misrepresentation and Insider trading happened simultaneously.Based on existing laws and related academic views, the third part recognizes the civil liability when Misrepresentation and Insider trading happened simultaneously from the four elements of tort liability. Considering the independent and particularity of the two actions, the actions and the faults when they happened simultaneously are the same with the condition when Misrepresentation and Insider trading happened separately. For the causal relationship and the damage recognition, they are discussed with occasion’s particularity and based on Misrepresentation’ and Insider trading’ recognition for them respectively.The forth part discusses the litigation way to realize the civil liability when Misrepresentation and Insider trading happened simultaneously. The litigation when they happened simultaneously is quite different from the litigation when the happened independently, because in the special occasion, there are three ways to initiate litigation, the recognition of plaintiffs are more difficulty, the form of litigation are to be chosen and form and distribution of liability are to be discussed. Therefore, this paper analyzes the three ways to initiate litigation from the perspective of theory and feasibility. These three way are litigation against both two actions or only one actions, or litigations against the two actions respectively; Then, this part recognizes the plaintiffs in the special occasion through the recognition of the plaintiffs of the two actions respectively; Then, this part compared five forms of litigation for the reason that plaintiffs are too many.; Lastly, this part discussed the civil compensation from the scope, the form and the distribution of liability.