Fubon Financial Holding Co., Ltd. Warrant

Fubon Financial Holding Co., Ltd. Warrant is a derivative financial instrument that grants its holder the right, but not the obligation, to buy or sell shares of Fubon Financial Holding Co., Ltd. at a predetermined price within a specific period. This type of security is designed to provide investors with leveraged exposure to the underlying company's stock price movements, allowing for the potential to amplify returns relative to changes in the share price. Warrants like this are commonly used in the Taiwan financial market for both speculative and hedging purposes. They appeal to investors seeking to participate in the price performance of a major financial institution without directly owning its shares. As a financial holding company, Fubon Financial plays a significant role in Taiwan's finance sector, engaging in insurance, commercial banking, securities, and asset management activities. Consequently, warrants tied to its equity are actively traded instruments, contributing to liquidity and price discovery within the market while offering diverse risk management strategies for market participants.