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This Risk Disclosure Statement is adopted pursuant to Article 15 of the Taipei Exchange (TPEx) Rules Governing the Trading of Emerging Stocks on the TPEx.
After the amendments made to the Regulations Governing Securities Trading on the Taipei Exchange, there are two categories of stocks traded on the TPEx: TPEx Listed Stock and Emerging Stock. Emerging Stock is a means provided to facilitate the trading of stocks that are neither listed on the Taiwan Stock Exchange (TWSE) nor on the TPEx, and thereby attract more emerging companies to the capital market. The criteria for a company to register as an Emerging Stock company on the TPEx are less stringent than those for listing as a TPEx listed company. For the former, the TPEx merely requires registration, whereas the latter involves a due diligence review of the company's eligibility. Investors are required to assess whether they are suited to invest in Emerging Stocks, given their own financial capabilities and economic circumstances. Investors should in particular take the following into consideration before making any trade decisions:
- The trading of Emerging Stocks is based on the investor's own judgments.
- Before trading Emerging Stocks, the investor fully understands that:
- Emerging Stocks may be prone to a number of limitations, including having less liquidity; Emerging Stock companies may also have relatively lower amounts of capital available and have been incorporated for a shorter time, and may lack profitability, etc.
- Trading of Emerging Stock shall be done by negotiated trading with the Emerging Stock's recommending securities firm through a securities brokerage firm or by over-the-counter negotiated trading with the Emerging Stock's recommending securities firm through a securities brokerage firm; however, the latter type of trading is applicable only to trades of 100,000 shares or more or an amount of NT$5 million or more per trade, and furthermore must meet the conditions of Article 22, paragraph 1, subparagraph 2, item A and paragraph 2 of the TPEx Rules Governing the Trading of Emerging Stocks on the TPEx.
- The investor is bound to comply with its duties for the proper negotiation, trading, and settlement procedures for Emerging Stocks, and is aware of the handling procedures, and relevant rights and obligations, in the event of any erroneous transaction or settlement default.
- An investor intending to trade Emerging Stocks that are issued by foreign issuers shall take special note that the issuing companies of these stocks are registered in foreign countries, and are susceptible to risks including political or economic instability in the countries where they operate, and legal and regulatory changes and differences in information disclosure in the countries in which they are registered.
- The first 10 digits of the stock symbol of an Emerging Stock are for the name of the company. The last 6 digits are for notations of the nature of the stock. If the available digits are not fully used, the symbol shall without exception be displayed with the first digit at the far left, leaving any unused digits at the end on the right. When there is an asterisk ("*") in the notations part of the symbol of a domestic Emerging Stock, it means the par value per share of the stock is not NT$10; if there is no "*" in the notations part of the symbol, it means the stock has a par value per share of NT$10. When "*-abbreviation of the place of registration" appears in the notations part of the symbol of an Emerging Stock issued by a foreign issuer, it means that the stock has no par value or the par value per share is not NT$10; when there appears only " -abbreviation of the place of registration" in the notations part, it means that the stock has a par value per share of NT$10.
The risks disclosed in this Risk Disclosure Statement merely represent a summary and are not exhaustive of all the possible risks and factors affecting market conditions to which Emerging Stocks are susceptible. In addition to carefully reading this Risk Disclosure Statement, investors should also be alert to other factors that could influence an investment decision, and conduct proper financial planning and risk assessment before trading.
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I (the Principal) hereby declare that I commit to be solely responsible for the risks involved in investing in Emerging Stocks on the TPEx. I have been duly informed by ________, a specialist of ________ Securities Co., Ltd., and fully understand the various kinds of risks associated with trading Emerging Stocks, and have received the Risk Disclosure Statement.
This Statement is submitted to:
Securities Co., Ltd.
Principal (declarant): (signature)
Date:
National ID No.:
Profit-Seeking Enterprise Uniform ID No.:
Representative:
Tel.:
Fax:
(This Risk Disclosure Statement is produced in duplicate originals, one of which shall be retained by the Principal, and the other shall be retained by the securities brokerage firm for recordation.)
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