FAQ

Generally Securities Trading Q1:What documents are required for individual and corporate investors to open a trading account?
Q2:Can I open two accounts at the same business premises of a securities broker?
Q3:How does an overseas Chinese or a foreign national open an account for trade of securities?
Q4:How do I make sure my name is not used by others to open a trading account without my authorization?
Q5:How to close a trading account?
Q6:Who is not eligible to open a trading account?
Q7:How can I access information on “best five asks/bids”?
Q8:What does Capitalization Weighted Stock Index mean?
Q9:What is the meaning of P/E ratio?
Q10:Can somebody use an alias or stay anonymous when reporting suspected violation of securities regulations by a securities firm or its employee?
Q11:Can a securities broker settle transactions on behalf of its client?
Q12:What is the difference between a put warrant and a call warrant?
Q13:Can I provide my account to others for stock subscription?
Q14:What is the closing price?
Q15:What is the trading unit?
Q16:Are listed stocks allowed to be traded off-Exchange?
Q17:Is the market closed when natural disaster happens?
Q18:How can a foreign national or company invest in Taiwan stock market?
Margin Trading Q1:Can odd lot and block transactions be traded on margin?
Q2:What should I do if I want to trade on margin?
Q3:How many margin accounts can I open with a securities broker that is allowed to provide margin loan and stock loan?
Q4:How long can a margin account stay inactive before it is terminated?
Q5:How to close a margin account?
Q6:Is there any regulation on short sale prices?
Q7:If the amount of a margin trade exceeds the line approved by the securities broker, how is the trade settled?
Q8:When should a margin trade be settled?
Q9:How is margin on financing and stock loan calculated?
Q10:What is the procedure for repaying the margin loan or stock loan?
Q11:How does the book closure of a listed stock affect margin short sales?
Q12:What can be done if an investor likes to transfer title of stocks bought on margin or stocks deposited as margin on net short position or stock loan during the announced book closure date?
Q13:What is the relationship between shares outstanding of a stock and its suspension and resumption of margin trade?
Q14:How is maintenance margin for margin trade calculated?
Q15:When the outstanding balance of stock loan in the market exceeds the outstanding balance of margin loan, how does it affect margin trade?
Securities Listing Q1:How does an issuer apply for listing of stocks on Taiwan Stock Exchange?
Q2:How is the offering price of a stock set? Is there any formula for reference?
Q3:When does a listed company need to make public announcement of financial statements?
Q4:What is a CPA audited and certified financial report? What are the types of auditor’s report?
Q5:What are the regulations of placing listed securities under an altered trading method, suspending the trading of such securities and delisting such securities?
Q6:Is a listed company allowed to apply for delisting?
Broker Management Q1:When is a stock considered listed?
Securities Lending Q1:What is Taiwan Stock Exchange Securities Borrowing and Lending System(TWSE SBL System)?
Q2:What is settlement coverage SBL?
Q3:What are the criteria for participants in TWSE SBL System?
Q4:What are the transaction types of TWSE SBL System?
Q5:What kinds of tax are levied on TWSE SBL System?
Clearing and Settlement Q1: When shall investors complete fund and securities settlement? For overseas investors who the broker reports to TWSE for delayed settlement(failed trade), what is their settlement time?
Q2: When shall securities firms complete fund and securities settlement?
Q3: In terms of clearing and settlement, what shall securities firms do to lower the settlement risk when taking selling orders from investors?
Q4: What time can securities firms receive their due fund/securities on T+2 ?
Q5: When is the cutoff time for the securities firms to report the default of investors to the TWSE?
Q6: What shall brokers do if they find clients are unable to complete securities settlement before 10 a.m. of T+2?
Q7: How is collateral calculated for use in the securities settlement borrowing system ? When shall it be delivered to TWSE?
Q8: What is the source of the eligible securities to be lent in the securities settlement borrowing system? What is the borrowing procedure? How to calculate the securities borrowing fee?
Q9: When can securities lenders retrieve their securities which were lent for the settlement purpose ? When can the retrieved securities be sold?
Q10:After investors have applied for lending specific securities for settlement, would the lending necessarily occur?
Q11:For investors who lent their securities for the purpose of settlement, is there any risk of not retrieving the securities?
Q12:For lenders, what’s the incentive for lending the securities for settlement purpose ? How to calculate it ? For securities firms, what’s the processing fee for processing lending securities?
Q13:When can lenders receive the lending revenue of lending securities for settlement purpose?
Q14:How to pay tax for the lending revenue resulting from lending securities?
Q15:If any investor is interested in lending his/her securities, how to apply for joining the securities-lending for the settlement purpose?
Q16:If securities firms are closed due to natural disasters, how do investors complete fund and securities settlement ?
Q17:What shall the securities firm do when it receives fake or counterfeit securities?
Q18:How do securities firms complete fund and securities settlement on T+2 when market is closed due to natural disaster?
Q19:Is there any prefunding regulation that requires investors to pay the principal of securities purchased one day before settlement day?
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