A must-see for stock investment beginners: How much does one share cost, how much is one lot, and how to calculate US stocks and Taiwan stocks?

Why is there such a big difference between US stocks and Taiwan stocks? Trading units are the key

Many investors feel puzzled when they first enter the market: why does buying and selling Taiwan stocks often require hundreds of thousands, while US stocks only need a few thousand dollars? The fundamental reason for this difference is not in the stock prices themselves, but in the trading system.

The minimum trading unit for Taiwan stocks is “one lot” (1000 shares), while for US stocks it is “one share.” This seemingly simple rule directly determines how much capital you need to prepare when entering the market. For example, TSMC’s stock price in Taiwan (code 2330) is about NT$561, so buying one lot requires NT$560,000; but the same TSMC stock in the US (code TSM) costs only $95 per share, which is less than NT$3,000 in New Taiwan Dollars. This is why many small retail investors are kept out by the high threshold of Taiwan stocks.

How much does one share of stock cost? First, understand what “stock price” is

Before delving into trading units, we need to understand the most basic concept of the stock market—what is the stock price.

The stock price is not a fixed number; it represents the price at which buyers and sellers are willing to transact at a specific moment. In other words, the stock price is how much money an investor needs to pay to buy one share of stock, or conversely, how much they can get when selling one share.

In Taiwan stocks, TSMC (code 2330) shows a stock price of NT$561, meaning one share of TSMC is worth NT$561 now. If at the same time Tesla (TSLA) shows $254.11, that means one Tesla share costs $254.11. Stock prices fluctuate in real-time with market trading, and different markets use different currency units—US stocks in USD, Taiwan stocks in NT$.

How to interpret the price of one share? From face value to market price

Many people confuse “face value” and “stock price,” but these are two completely different concepts.

Face value is the initial value set by the company for each share, used to record the original capital contribution of shareholders. Taiwan used to implement a fixed face value system, with each share having a face value of NT$10, so most listed companies in Taiwan have a face value of NT$10. Overseas companies, however, have various face values, some are $1, some are $0.01.

Market price (stock price) is what you should actually pay attention to; it reflects the market’s valuation of the company— the stronger the company’s profitability and growth prospects, the higher the stock price; vice versa. Therefore, when investors want to judge “how much is one share,” they just look at the current market transaction price, and don’t need to care about the face value.

For example, if a stock has a face value of NT$10 but the current market price is NT$350, you pay NT$350, not NT$10.

How much does one lot of Taiwan stocks cost? The knowledge of whole shares and odd lots

Since the minimum trading unit for Taiwan stocks is “one lot,” understanding “how much is one lot” becomes very important.

One lot equals 1000 shares, so if you buy one lot of a stock in Taiwan, you are actually buying 1000 shares. The calculation is simple: stock price × 1000 = price of one lot.

Taking TSMC as an example, with a stock price of NT$561, one lot costs NT$561 × 1000 = NT$561,000, which is about NT$560,000. For most retail investors, this is a significant expenditure, so Taiwan’s market later introduced “odd lot trading.”

Odd lot trading allows investors to buy and sell fewer than 1000 shares (1-999 shares), greatly lowering the entry barrier. However, the liquidity of odd lot trading is not as good as whole lot trading, and transaction times differ. Here is a comparison:

How to avoid confusion when calculating the price of one share in US stocks and Taiwan stocks?

US stocks and Taiwan stocks differ significantly in trading units, pricing methods, and fees. Understanding these differences is crucial for investment decisions.

First is trading units. US stocks allow you to buy any number of shares, with the minimum being 1 share, so you can start small and gradually build your position. Taiwan stocks require buying at least one lot (1000 shares), which can be a financial burden for new investors with limited capital.

Second is cost differences. US stock trading fees are generally very low; many brokers even offer commission-free trading. Taiwan’s transaction fee rate is 0.1425%, so the higher the purchase amount, the higher the absolute fee.

Third is price limit rules. US stocks have no daily price limit; prices can fluctuate freely. Taiwan stocks set a ±10% limit to prevent excessive speculation. This also means that even if you are correct about the direction, your profit potential on that day is limited.

Finally is trading hours. Taiwan’s trading hours are relatively fixed—9:00-13:30 during the day session and 14:00-14:30 after hours. US stocks have longer trading hours, divided into daylight saving time (21:30-4:00) and standard time (22:30-5:00), providing more opportunities.

The table below clearly shows the main differences:

What determines how much a stock costs? Three major factors

After understanding the trading mechanisms, the next question is: what factors determine a stock’s price? Why are some stocks worth 1000 yuan per share, while others are only worth 10 yuan?

First is the company’s fundamentals. The financial health, profitability, and growth potential of a listed company influence investors’ willingness to buy. A company with steadily increasing net profit and competitive advantages will often see its stock price pushed higher; conversely, poorly managed companies’ stock prices will fall. That’s why analyzing financial reports and understanding a company’s business model are so important for investors.

Second is the macroeconomic environment. Factors like GDP growth, interest rates, unemployment, and inflation affect the overall stock market performance. When the economy is doing well, investor confidence is high, demand for stocks increases, and prices rise; during economic downturns, investors become more cautious, and prices generally fall.

Third is market sentiment and expectations. Investor psychology is a powerful driver of stock price fluctuations. Negative news about a company, political instability, or sudden global events (like a pandemic) can trigger panic selling, causing prices to drop. Conversely, optimistic market expectations and positive news can attract large buying interest, pushing prices up.

These three factors interact to jointly determine the final market price of a stock.

Start your investment journey

If you now understand “how to read the price of one share” and the differences between US and Taiwan stocks, the next step is to prepare for real trading. Choose a suitable broker, learn the trading rules, develop your own investment strategy, and enter the market step by step. Remember, there are no shortcuts in the stock market—knowledge and patience are your best weapons.