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Taiwan Stock Exchange Corporation Directions for the Particulars to be Recorded in Risk Disclosure Statements for Securities with Warrants  CH

Announced Date: 2001.11.09
1     Securities with warrants add the rights to subscribe shares on securities. In view of the fact that the subscription warrants feature the right to purchase and sell the underlying securities and their value interacts with the price of their underlying securities, investors are advised to be aware of the impact of the price of underlying securities on the price of securities with warrants.
2     Prior to listing, the issue price of the securities with warrants, conditions on exercise of the warrants and the relevant matters are established by the issuer. After the securities with warrants are listed and traded and freely transferred at the centralized exchange market, their prices are determined according to supply and demand of the market.
3     Prior to purchase of securities with warrants, investors are advised to understand the financial and credit position of the issuer in connection with its ability to perform the contract. The Taiwan Stock Exchange Corporation does not guarantee the issuer's liability for contract performance.
4     Under general circumstances, investors will be deemed to have waived their right to exercise the right in securities with warrants if they fail to request to so exercise by the expiry of the period when the rights may be exercised.
5     The risk disclosure statement is not inclusive and is not a comprehensive list of all risks of securities with warrants and factors that may affect market performance. Before making an investment, the investor should not only carefully review this risk disclosure statement but also be alerted to other factors that may cause an impact, and make well-thought financial plans and thorough risk assessments to avoid insufferable losses from hasty or ill-judged decisions on investment.

    Note 1:The securities firm may include additional information in the particulars to be recorded in the risk disclosure statements depending on practical needs.
    Note 2:The principal shall sign the risk disclosure statement to undertake as below:
  1. it shall be solely responsible for the investment risks;
  2. it has received a copy of the risk disclosure statement in advance; and
  3. After being provided with explanations by the representative sent by the securities firm (the representative must also sign on the statement to take responsibility), it fully understands the risks of trading of securities with warrants.
    Note 3:The risk disclosure statement is executed in duplicate, with one copy to be retained by the securities firm for filing purpose and the other by the investor for reference.