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Securities and over-the-counter ("OTC") securities listed by of foreign enterprises in Taiwan include primary listed and OTC securities and secondary listed and OTC securities.
Primary listed and OTC securities refer to stocks of a primary listed or OTC company, as well as relevant securities underlying such stocks, that are listed on the Taiwan Stock Exchange Corporation ("TWSE") and Taipei Exchange ("TPEx"). Secondary listed and OTC securities refer to foreign stocks and depository receipts of a secondary listed or OTCcompany, as well as relevant securities underlying such foreign stocks or depository receipts, that are listed on the TWSE or TPEx. Before making an investment in such securities, the investor is advised to evaluate carefully whether the investment is suitable in view of its own financial capacity and economic condition, understand the potential risks the investment may entail, andin particular be aware of the following:
- Where the primary listed or OTC company and secondary listed or OTCcompany are companies registered in a foreign country, their requirements on corporate governance, accounting principles, tax system etc. may differ from the R.O.C.'s. The listing and OTC listing standards, ways of listing reviews, disclosure of information, protection of shareholders' interests, and supervision standards etc. may also vary among R.O.C. enterprises. The investor should understand this as well as possible potential risks.
- The investor should ascertain the features, market risk and risks of the issuer of the product, including the following, before investing in primary and secondary listed and OTC securities:
Features of the product being invested in, liquidity risk when the product is traded in the R.O.C. market, financial and business risks of the issuer, political, economic and social changesof the location of the issuer, changes in the business cycle of the industry, and legal compliance etc.
- Where the primary and secondary listed and OTC securities are traded on the TWSEand TPExstock exchange, orders for trading are governed by the R.O.C. laws and regulations as well as stock exchange marketregulations.
- Of the abbreviation of a primary listed or OTC security, thefirst ten bytes represent the company name and the last six bytes an annotation of the nature, all to be left-aligned. When the nature indicates "*-abbreviation of the place of registration," it means the stock in question has no par value or the par value per share is not NT$10; when the nature indicates "-abbreviation of the place of registration," it means the stock in question has a par value per share of NT$10.
- Where the secondary listed or OTCcompany lists and trades on both the TWSEor TPExand an exchange of its original place of listing or OTC listing at the same time, the TWSE may suspend / resume trading of the secondary listed or OTCsecurities if the secondary listed or OTCcompany applies to the exchange of the original place of listing or OTC listing for, or an announcement is made by said exchange of, the suspension / resumption of trading. In view of the fact that the trading system, trading dates, trading hours etc. vary between the stock exchanges of the two places, and that differences also exist among individual cases, the investor should understand concurrent suspension / resumption of trading in the two places is not possible due to time gap.
I hereby represent that I have received the Risk Disclosure Statement for Listing and Over-the-Counter ListingofSecurities (Including Depository Receipts) by Foreign Enterprises in Taiwan from you and also been provided with explanations by a representative, Mr. or Ms. ______________, sent by you, and that I fully understand the risks of investing in securities and OTC securities (including depository receipts) listed by foreign enterprises in Taiwan.
Signed by : (signature or authorized seal)
Account No.:
Date:
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