A Study of Paragraph 1, Subparagraph 4 of Article 155 of Securities and Exchange Act

• Main Authors: Wan-Yu Chiou, 邱婉瑜
• Other Authors: In-Jaw Lai
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/13267657836414858975

碩士 === 中原大學 === 財經法律研究所 === 105 === Security market is inseparable from national economy, because security market is the place for government and enterprises to issue security. When development of enterprises up to a certain extent, they will face to the funding problem. If enterprises use debit and credit to solve their underfunded problem, they will find that no enough funds can be gathered. But if they use the system for initial public offering(IPO) and listing on stock markets, they can gather enough funds by trading of securities. In other words, Economy can use the system for IPO and listing to increase their funds. When enterprises have enough funds, they can do plant expansion, put funds into research and development, hire more employee, and also promote national economic development and provide benefit to whole people. When enterprises have profit, they will distribute among the investor. Security is different from other tangible goods. Security can''t evaluate its value by itself. Security''s value is decided by enterprises asset''s value which most people can''t understand. In other words, security market is in the information asymmetry environment which causes the Moral Hazard, adverse selection, and the Problem of "Lemon Market". Therefore, in order to ensure the fairness of securities transactions and protect the public investment. Preventing the securities market in the fraud is the issue that the country has been noted. Manipulation of the securities market will make the securities change in "supply and demand" and price. This behavior produce illusion that undermine the original order of the market. Then investors will be deceived by a situation of the illusion, and be suffered damage of property, that investor will reduce the confidence in the market. Even more distorted financial and the tax system. Therefore, the provisions of Securities and Exchange Act on securities market manipulation is one of the important issues for securities management. Thus securities market manipulation of Continuous trading is the more common means in the actual situation. Securities market manipulation of Continuous trading is regulated at Paragraph 1, Subparagraph 4 of Article 155 of the Securities and Exchange Act. But the words of the act are not clear, and then causes some problems. So this study can clarify this problem. This study sorts out related academic papers and foreign legislation to clarify the direction of the explanation to the Paragraph 1, Subparagraph 4 of Article 155 of the Securities and Exchange Act. And also sort out Supreme Court judgment to understand which fact is considered by judge. Paragraph 1, Subparagraph 4 of Article 155 of the Securities and Exchange Act is amended in July 2015. The phrase "there is an impact on the market price or the order of the market order" has been added, and this requirement has also been explored in this study.