The decision of Tong Lung metal industry Co., Ltd serves an important position in the Securities Exchange Act field. The decisions made by the Supreme Court and Taiwan High Court exist strong conflicts with regard to the interpretations of the series transactions and insider trading. This article would like to explore from the introduction statement of the case. Afterward the article comments on the issues and rules forming the basis of the holding by the related academic theories and decisions of courts. Furthermore, this article takes the position that, prohibition against manipulation of security prices by series transactions should add the exemption clause and the courts shouldn't apply administrative interpretations for the short swing trading to judge the insider trading.