Proved by the experience of the developed country and areas, The Securities Investor Protection Fund is very helpful to increase of investor\'s confidence, establish a long-term mechanism for preventing and handling the risks of securities market, promote orderly and healthy development of the securities market.

Securities Investor Protection Fund attracts the attention from securities supervision authorities worldwide for it can dissolve the bankruptcy risks from Securities Corporation through compensating clients as well as supervise the fiscal situation, enhance the confidence of investors, maintain the resource of capital market.

Based on the Chinese stock market development background, this article analyzes deficiency and flaw in the current Securities Investor Protection Fund(referred to as SIPF hereinafter)legal system and brings forth advice through introducing and commenting on relevant international litigation experience.

Part two: Issues relating to the raising of Securities Investor Protection Fund.

With the promulgation of the“Measure for Security Investors Protection Fund”in our country in 2005 and this system has been definite by "Security Law" in 2006 , Security Investors Protection System has been formally established in China.

Empirical result shows that security investors in China have different reaction to different types of dividend policy in the decision-making process as a result of psychological fact.