Category: Money tips Release Date: 2007-03-24
Investors in a letter last week, I found that many investors feel cheated always in position, are always complaining about too many crooks in society, while constantly repeating their own past. I think that, despite our country's securities market is not a very long time to set up by the impact of the traditional system will inevitably retain a number of imperfections, but after 10 years of effort, this market framework has been perfected, especially in the the protection of small investors the legal system has an initial shape, investors are not completely isolated position, the key is to look at how we can use existing laws to adequately protect their interests.
First, investors buy shares after becoming the company's shareholders, and shareholders as the company's owner on the capital gains enjoyed by law, major decisions and choices managers and other fundamental rights. If the small investors can use their rights under the law, to understand the company's operation, to understand the management as an agent perform his duties, and accordingly the company's general meeting of shareholders actively involved in the use of proxy voting rights, collecting the right to vote, cumulative voting rights and other measures to fully express their will, then the insider control, malicious related party transactions, large shareholders, the company's interests as well as the invasion and occupation of phenomena such as false statements would be largely contained. Of course, the timely exercise of the "vote with their feet" approach, throwing the company's shares to support the acquirer to obtain control of the company, but also on the company's key oversight measures. Although the exercise of individual rights, small and medium investors may have little impact, but as long as everyone to exercise their rights, it will produce a significant impact on the company, but also be able to fully protect their legitimate rights and interests. Than complaining afterwards to be much more effective than ex post litigation and arbitration costs much lower.
Second, investors, unlike ordinary goods or services to consumers, in the risky stock market, faced with intangible, complex and sometimes unprecedented investment products and services. If investors can be faced by a proper understanding of the technical characteristics of products or services and the related legal systems, with the analysis of issues and problem-solving capability, have the ability to right-related investment products and services, reasonable doubt, and can a preliminary analysis of relevant information and judgments in decision-making as to what the former know that the problem, it was easier to detect fraud and other illegal acts, but also a timely manner to regulatory agencies wrongdoing so that it can identify problems in the first time, and offenders to investigate, in turn clean the market.
Third, as the stock market there is a problem of information asymmetry, investors often difficult to fully grasp the information needs through professional counseling agencies. But investors and advisory bodies of knowledge between the asymmetries and their inherent conflict of interest so that investors investment advisory difficult to determine the content and quality of their services, so often led some investors to pre-filled with expectations, after loudly fooled. Treatment of this issue in addition to further strengthen the legal disclosure of information as well as investors to strengthen the information collection and analysis capabilities, more importantly, take up the full legal weapons to protect their legitimate interests. In seeking services, investors should pay particular attention to before making investments with the various service providers enter into a written agreement in accordance with law, and strictly subject to review each other's qualifications and scope of the contract agreement as full as possible; in the course of contract performance, we should at any time obtain and retain evidence of performance-related; When they find each other's breach of agreement, it shall promptly conduct negotiations or litigation or arbitration according to claim their rights, to avoid or reduce their own losses.
