The Research of Insider Trading and Disgorgement Enforcement of Short Swing Transaction: Aiming at the Argument of Abolishment From Economic Analysis of Law

• Main Authors: Tung-sang Wang, 王東昇
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/97082280826731729402

碩士 === 東吳大學 === 法律學系 === 97 === As a result of current financial crimes and downturns mostly conducting of insider trading in capital markets, nations worldwide do everything within their power to regulate stringent laws ; nevertheless , the result makes most investors disappointed. In 1966, Professor Henry G. Manne‘s alternative view points raise widely academic and practical discussion; likewise , his unique perspective triggers this thesis. The following will breifly introduce the disgorgement of short swing transactiona and insider trading regulations. The disgorgement of short swing profits, which applies to prohibit particular insiders from getting profits by purchase and sale that take place within any six-month period. Insider trading, derived from the U.S and varied from The Disclose or Abstain Rule, Fiduciary Duty Theory and Misappropriation Theory, expand the scope of its application and are applied in judicial practice. Critics have point out that it is totally ineffective to prohibit insider trading because insiders can easily escape from short-swing ragulation ;however, it’s still a useful rule for preventing speculative abuses from insiders by its characteristics. Therefore,either disgorgement of short swing transactiona or insider trading is abolished due to the adoption of the following theories such as Pretrading Disclosure(by Jesse M. Fried)、instead of insider trading(by Marleen O’Conner and Michael H. Dessent) and Efficinet Market Hypothesis(by Carlton and Fischel) might leads to Zeno’s paradox. In addition to adopting Posner’s concept of 「Opportunity Cost」、 「The Law of Demand」and 「Efficiency」, I boldly adapt the rules and theories from Hand Formula、Gary Becker and Ronald Coase to prove my view points of steadily keeping disgorgement of short swing transaction and strengthening its enforcement is definaitely a must .