Course Objective:
This course will present the operation of capital markets and the purposes of securities statutes that regulate the markets and market players. The structure of the capital markets will be explained in the first several classes. The Securities and Exchange Law will subsequently be analyzed thoroughly in line with the Order of the Provisions of the Law. Specifically, we will explain the fundamental issues regarding securities offering, issuance, private placement, and trades. For instance, information asymmetry is a common difficulty faced by investors, and the registration and disclosure requirements are put in place to prevent fraudulent behaviors by issuers and underwriters. Next, the functions and operations of securities firms and the Stock Exchange will be introduced. Also, we will discuss the procedures of listing and trading securities on the Stock Exchange. Finally, we will study the criminal penalty for violations by the issuer, its insiders, underwriters, as well as other relating entities and individuals. The supplemented regulations and rulings published by the knowledgeable agencies are also provided throughout this class so that students understand real-world operations and transactions.