There is a lack of historical research on Taiwan stock market because the previous research mostly focuses on the development after the Taiwan Stock Exchange Corporation was established in 1962 to initiate the stock exchange market. Nevertheless, it is often neglected that stocks had already been traded over the counter (OTC) during the Japanese Colonial Period. The OTC Period, however, is not paid enough attention, and thus the research results are scanty. The insufficiency usually leads to a misunderstanding that Taiwan stock market only came into existence after the Taiwan Stock Exchange Corporation had been founded.
The purpose of this dissertation is to explore the development and change of Taiwan stock market during the OTC Period (1899-1962) when Taiwan was ruled by Japan and after World War II. My research is organized around two market functions, including issuing stocks and stock circulation. Moreover, archival materials are sorted, analyzed and theorized so as to complement the existing literature. It is my intention to investigate the development of the stock market in the economic history of Taiwan and examine those topics that have not been studied before or only looked into cursorily.
The development of Taiwan stock market on the whole is a process evolving from OTC (over-the-counter) to the stock exchange market as the size of the economy grew larger. Since its inception, the system of Taiwan stock market has been gradually formed alongside with the development of the market. Its rise and fall are in accordance with the vicissitudes of the market; there have never been any ruptures or absence. The design of the stock exchange market and the plan for its building are inspired by the experience and lessons learned when stocks were purchased over the counter. Therefore, Taiwan stock market has been developed from OTC to the stock exchange market rather than started as a system directly transplanted from other countries.