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Article 11
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The term "other equity-type securities" referred to in Article 157, paragraph 6 and Article 157-1, paragraph 1 of the Act shall include convertible corporate bonds, corporate bonds with warrants, stock warrants, call (put) warrants, certificates of payment for shares, stock warrant certificates, certificates of entitlement to new shares, bond conversion entitlement certificates, Taiwan depositary receipts, and other equity-type securities.
The term "profit" referred to in Article 157, paragraph 1 of the Act shall be calculated in accordance with the following methods:
- Where the types of securities obtained or sold are of the same types, the price difference shall be calculated in a manner that the highest selling price matches the lowest purchasing price, the second highest selling price matches the second lowest purchasing price, and so on. Any losses resulting from the securities trading shall not be counted into the said calculation.
- Where acquired or sold securities are of different types, the profit shall be calculated, in the case of ordinary shares, on the basis of the trade price and the number of shares traded; calculation of profit for other securities shall be based on the closing acquisition or sales prices of the ordinary shares on the day each such security was acquired or sold and the number of ordinary shares for which such security was exercisable or convertible; matching of the acquisition and sales prices shall be based on the provisions in the preceding paragraph.
- The dividends received by the traded stocks shall be included into the price difference calculation in the preceding two subparagraphs.
- A 5-percent legally mandated interest under Article 203 of the Civil Code shall be added into the price difference. Such interest shall be calculated based on the date of last trading until the date of disgorgement to the company, in the case of subparagraphs 1 and 2 of this article, and the date cash dividends are received until the date of disgorgement to the Company, in the case of item 2.
The commissions charged by securities firms and the securities transaction tax arising from those trading shall be deducted from the profit in calculating the profit differential of item 1 of the preceding paragraph.
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