What are the pitfalls in the full delivery stock list? A complete guide you must read before investing

First, a Heart-Deep Question: Why Do Your Stocks Become Fully Delivered Shares?

Many investors are wary of fully delivered shares, but few truly understand this mechanism. In simple terms, fully delivered shares refer to a settlement system where the buyer must pay the full purchase amount of the stock. Why does this system exist? Because these stocks often hide issues such as operational difficulties, financial troubles, or major violations, causing the net asset value per share to fall below the face value of 5 yuan.

In other words, fully delivered shares are not inherently “junk stocks,” but are marked by the market with a “risk warning” label.

Why Are Fully Delivered Shares “Isolated”? Understanding the Logic Behind Trading Restrictions

Fully delivered shares lose the rights to margin trading and securities lending, but this is not a punishment—it’s risk management. When a company’s stock is listed as a fully delivered share, it means:

• The company’s financial indicators have deteriorated, with issues in shareholder equity or profitability
• There may be involvement in major violations, requiring market supervision
• Stock liquidity is limited, making buying and selling more difficult

However, this state is not permanent. When the company’s operations turn around, it can apply to restore normal stock trading status.

How Can You “Turn Around” Fully Delivered Shares Back to Ordinary Stocks?

The criteria for exiting fully delivered shares are quite clear:

For listed companies: Consecutive two quarters with net asset value per share exceeding 5 yuan, and shareholder equity remaining above 300 million yuan for two consecutive quarters.

For OTC companies: A single quarter’s financial report showing net asset value per share over 5 yuan, with shareholder equity increasing.

Once these conditions are met, the Taiwan Stock Exchange will conduct a formal review on the first working day after receiving the quarterly reports, and the change will be announced two days later. This means that the status of fully delivered shares is not lifelong; it depends on whether the company truly has a turnaround.

How to Find the Latest List of Fully Delivered Shares?

Want to check which stocks are currently on the fully delivered share list? The process is simple:

Log in to the Taiwan Stock Exchange official website → Click on “Trading Information” → Click on “Change Trading” → You will see the complete list of fully delivered shares and detailed information.

Regularly checking this list is important because it is dynamically updated based on quarterly report data. Some stocks may enter or exit this list at any time.

How to Buy and Sell Fully Delivered Shares? Trading Process Differs Significantly from Ordinary Stocks

Since fully delivered shares cannot be used for margin trading, the buying and selling process is more complicated:

Key steps for buying:

Individuals cannot place orders directly. You need to transfer the full amount (including fees) to the broker’s designated settlement account, then provide the stock code and number of shares to the broker. A small detail: usually, you transfer an amount slightly higher than needed to prevent insufficient funds from causing order failures. If there is a balance before 3:30 PM, it will be automatically refunded to your account.

Selling requires prior application:

This step is the most cumbersome. Investors must call their broker to request “stock reservation” (pre-acceptance of stocks) for the day, which the broker will confirm via recording. Once approved, you can then instruct the broker to sell. If the sale is not completed by market close, you need to re-reserve stocks the next day.

Why Are Fully Delivered Shares So Risky? Four Major Traps Investors Must Know

The risks of fully delivered shares far exceed those of ordinary stocks, mainly in four aspects:

1. Operational Risk—The Root Is Rotten

Stocks are listed as fully delivered shares usually due to deep-seated issues such as management problems, financial difficulties, or legal violations. This indicates serious problems, and investment logic must be much more cautious than with regular stocks.

2. Volatility Risk—Continuous Limit-Down Is Not a Dream

Stocks with net asset value near 5 yuan tend to be highly volatile. Once a stock is officially converted to fully delivered or loses credit trading rights, its price may hit limit-down repeatedly, causing huge short-term losses.

3. Return Risk—No Dividends or Rights Issues

Unlike regular stocks, fully delivered shares do not pay dividends or have rights to participate in new share issues. Investors’ only hope is that the company turns around and the stock recovers to ordinary stock status, leading to a price rebound. This waiting risk is often underestimated.

4. Liquidity Risk—Stuck in the Market

Fully delivered shares trade only once every 30 minutes, and many stocks face severe lack of counterparties. Entering or exiting the market can be very difficult, significantly increasing transaction costs and even leading to situations where you want to sell but can’t.

Which Brokerage Supports Trading Fully Delivered Shares?

Several brokerages in Taiwan support trading fully delivered shares, including:

Fubon Securities — One of Taiwan’s largest brokers, with a mature online trading platform, offering full support for fully delivered shares and a wide range of investment tools.

Yuanta Securities — The most branches, supporting mobile orders and cloud synchronization, making trading more convenient.

CITIC Securities — Rich experience in financial markets, providing professional investment advisory services, suitable for investors needing guidance.

KGI Securities — An established broker, with user-friendly account management features, supporting full trading services for fully delivered shares.

Choosing a broker mainly depends on personal habits and trading frequency. But regardless of choice, it’s crucial to fully understand the risks before trading fully delivered shares—never follow the crowd blindly.

Final Advice: Fully Delivered Shares Are Not a Casino

Stocks on the fully delivered list are not necessarily off-limits, but only if you have done your homework. Review quarterly reports, understand the company’s turnaround plans, and study technical and chip analysis—these are essential.

Remember: Because the risks are high, every trading decision must be made carefully. While some fully delivered shares do turn around, many continue to decline. Before placing an order, ask yourself: Do I really understand this company?