How much is one share? How is the price of one Taiwan stock sheet calculated, and how does it differ from the US stock market?

One Share vs. One Lot: Taiwan Stock Market’s Unique Trading System

Before entering the stock market, understanding the trading units is essential. The biggest difference between Taiwan stocks and US stocks lies in the setting of trading units—Taiwan stocks use “one lot” as the main unit, while US stocks are measured in “one share.”

Many novice investors will find that the buying and selling costs in Taiwan stocks seem much higher than in US stocks. This is not a coincidence but because the trading mechanisms of the two markets are completely different. In Taiwan stocks, 1 lot equals 1000 shares. In other words, when you buy one lot of Taiwan stocks, you are actually purchasing 1,000 shares of that stock.

Taking TSMC as an example, suppose its stock price is NT$561. The cost to buy one lot of TSMC stock would be: 561×1000=NT$561,000, approximately NT$560,000. For most retail investors, this capital investment is quite substantial.

The True Meaning of Stock Price: Understanding the Actual Price of One Share

The stock price represents the transaction price of one share, determined in real-time by the latest transaction between buyers and sellers. Different countries’ stock markets use different currencies as the pricing unit—US stocks are priced in USD, while Taiwan stocks are priced in TWD.

When we look at stock quotes, the displayed number is the “current market price of one share.” For example, on August 2, 2023, Tesla (TSLA) in the US stock market traded at $254.110 per share. On January 6 of the same year, Tesla’s share was only $101.81. In less than seven months, the value of one Tesla share doubled, illustrating the volatility of stock prices.

The same applies to Taiwan stocks. For example, on April 30, 2024, Taiwan Cement (1101.TW) had a market price of NT$32.10 per share. Investors can directly view this number on trading software to understand the real-time price of one share.

It is worth noting that, the face value of a stock has no direct relation to its stock price. The face value is merely a reference used by companies to record the original shareholder capital contribution. For example, most listed companies in Taiwan have a face value of NT$10, but their actual stock prices can be much higher or lower than this value. The true determinants of stock price are the company’s profitability and market investors’ expectations.

How Much Does One Lot of Stock Cost? Viewing Taiwan Stock Market Costs from Trading Units

Now that you understand the relationship between “one share” and “one lot,” calculating the cost of “one lot” becomes straightforward. Price of one lot = stock price of one share × 1000.

Using TSMC as an example:

• Price of one share: NT$561
• Cost of one lot: NT$561×1000=NT$561,000

This means that to purchase one lot of TSMC via full share trading, investors need to prepare over NT$560,000. Due to this high threshold, the Taiwan stock market has introduced a “partial share trading” mechanism, allowing investors to trade in units as low as 1 share.

Full Share Trading vs. Partial Share Trading: Two Options in Taiwan Stocks

To lower the entry barrier for retail investors, Taiwan stocks offer two trading modes:

Generally, if funds are sufficient, choosing full share trading can achieve better execution efficiency.

Why Do US Stock Trading Units Look Much Cheaper?

The difference in trading mechanisms between US stocks and Taiwan stocks directly results in a huge gap in entry barriers. US stocks are traded in units of 1 share, not 1 lot.

For example, TSMC is dual-listed: in Taiwan (code 2330), its stock price is NT$561; in the US (code TSM), its price is about $95. The comparison of purchase costs is as follows:

• Buying one lot of TSMC in Taiwan: NT$561×1000=NT$561,000
• Buying one share of TSMC in the US: $95×1= $95 (about NT$3,000)

The difference exceeds 187 times.

Below is a summary table of the main differences between US stocks and Taiwan stocks:

The design of US stock trading units makes it easier for individual investors to participate, but this does not necessarily mean US stocks are better than Taiwan stocks—each market has its own characteristics, and investors should choose based on their capital and strategy.

Factors Determining a Stock’s Price of One Share

Stock prices are not fixed; they are the result of multiple factors working together:

Company fundamentals: Financial health, profitability, growth prospects, etc., form the basis of stock prices. Companies with strong performance attract investors, pushing prices higher. These details can usually be checked through financial statements.

Macroeconomic environment: Indicators like GDP, interest rates, inflation influence overall market trends and, consequently, individual stock prices. When the economy is strong, the stock market tends to rise; during recessions, it usually falls.

Market sentiment and expectations: Investor confidence and expectations often have self-fulfilling effects. Good news can trigger buying waves, while bad news can lead to selling. Political risks, geopolitical events, pandemics, and other sudden situations can quickly change market sentiment.

Understanding these factors helps investors make more rational trading decisions.

Start Your Trading Journey

After mastering the basics of stock pricing and trading units, you can consider entering the market. The complete process generally involves three steps:

1. Register an account: Fill in personal information and submit an application
2. Deposit funds: Quickly transfer trading capital through various methods
3. Trade: Discover trading opportunities and place orders

Whether choosing US stocks or Taiwan stocks, understanding how much one share costs and how to calculate one lot is the first step to becoming a qualified investor.