Supervising Policy's Effect On The Transaction Price Of Shell Company

It is widely acknowledged by public economics that market is an efficient way to organize economic activities,while government may improve the effects.On account of the shortage of market operation,one of the main function of government is to regulating the market.It is principle to follow the objective law when issuing rules,and only in such way will rules be effective.Security market is one of the most important public fields since it contains billions of participants.Regulators introduce policies in order to improve the efficiency of security market and to control risks.On the other hand,flaws and risks of security market drive the amendment of public policies.During 2014 and 2017,the transaction value of Shell Company experienced fluctuation,more specifically,the price of Shell Company went up to a rather high level from the year of 2014 to the 3ed quarter of 2016,then it declined and came back to a normal level.It is the price level of Shell Company that drives the publishment of regulating rules,and these rules in turn affect the value of Shell Company.Taking the transaction value of Shell Company as the point of penetration,this paper tries to deal with the relation between market and regulation.Firstly we analyze the developing path of Shell Company and the price level in each phase,then we summarize the vital rules relevant to the price of Shell Company.Based on these facts,we discuss the dialectical relation between the price of Shell Company and regulations.We find that in order to reach the balance between market and government and to optimize the allocation of resources,regulators must respect and obey the objective laws of the market.Only in such way will the rules be effective and will the market become more efficient.