What Is The Systemic Risk In The Market?

market

System risk, also known as market risk, refers to the possibility of the loss of all stock prices on the stock market due to the influence and change of a certain factor.

In false statements or fraudulent cases, investors may also be exposed to other risks when they are infringed upon by false statements.

Therefore, the nineteenth provision of the Supreme People's Court on the trial of civil compensation cases caused by false statements in the securities market provides that: "if the defendant proves that the plaintiff has the following circumstances, the people's court shall assume that there is no causal relationship between the false statement and the damage result:...

(four) loss or partial loss is caused by other factors such as securities market risk and so on.

As can be seen from the above provisions, the core of this provision is the burden of proof borne by the defendant, the false statement actor, who bears the risk of the system.

If a defendant defends a system risk in the stock market, he must bear the strict burden of proof. First, he should give evidence to prove that the cause of the system risk is happening. The proof is that the investor's loss is caused by the reason.