How much does one stock cost and how to read it: A complete guide to Taiwan and US stock trading units

Many novice investors ask: Why are Taiwanese stocks so expensive to buy and sell, while U.S. stocks are surprisingly cheap? The key isn’t the stocks themselves, but the huge difference in “trading units.” To truly understand how much a single share costs and how to interpret it, you first need to grasp that Taiwan and the U.S. use completely different trading unit systems. This article will explain stock pricing logic from multiple angles, including trading units, share price calculation, and cost comparisons.

Why is one Taiwan stock share so expensive? The trading unit is the culprit

The fundamental difference between Taiwan stocks and U.S. stocks lies in their trading units. Taiwan stocks are traded in “lots” (one lot = 1000 shares), while U.S. stocks are traded per “share.” This simple distinction determines the initial cost barrier for investors.

For example: If a company’s stock price is 100 units (TWD or USD), buying that stock in Taiwan requires purchasing one lot, which costs 100 × 1000 = 100,000 TWD. But in the U.S., you can buy just one share for $100. That’s why many people think Taiwan stocks are “expensive” and U.S. stocks are “cheap”—it’s not the stock itself that’s expensive or cheap, but the minimum purchase size.

The difference between face value and stock price: don’t confuse them

Before discussing “how much is one lot of stock,” you need to clarify a common confusion: face value and stock price are two different things.

Face value is a historical record from when the company was established. For example, if a Taiwanese company’s capital is 10 million TWD divided into 1 million shares, each share’s face value is 10 TWD. Taiwan used to enforce a fixed face value system, so most listed companies still have a face value of 10 TWD today. In contrast, the U.S. and other markets have no such restrictions, and face values vary widely.

But face value is just a reference for the amount shareholders invested; what really matters to investors is the market price—what the stock is trading at in real time. A company with strong performance and good prospects may have a stock price many times higher than its face value. Conversely, a poorly performing company’s stock may trade below face value. So, don’t treat face value as the stock’s market price.

How much is one share? How to read current market price

The stock price represents the “price of one share” in the market. To see how much one share costs, simply check a stock trading app or financial website for the current transaction price.

For example, Tesla (TSLA) on August 2, 2023, was priced at $254.11. That means buying one share of Tesla at that moment costs $254.11. If you bought it on January 6, 2023, the price was only $101.81. In just seven months, the same share doubled in value—that’s the power of stock price fluctuations.

The same applies to Taiwan stocks. For instance, on April 30, 2024, Taiwan Cement (1101.TW) was trading at NT$32.10 per share, which is the amount you’d pay to buy one share of Taiwan Cement.

How much is one lot of stock? The unique calculation in Taiwan

The concept of “one lot” is unique to Taiwan stocks. One lot equals 1000 shares. When you buy one lot of a stock in Taiwan, you’re actually buying 1000 shares.

So, how do you calculate the cost of one lot? The formula is simple:

Cost of one lot = stock’s current share price × 1000

For example, TSMC’s stock price is NT$561 per share. To buy one lot, you need:

561 × 1000 = NT$561,000

That’s why many retail investors feel that buying one lot is very expensive. NT$561,000 is a significant amount for an average investor, which is also why Taiwan introduced “odd lot” trading (零股交易) to lower the barrier.

Whole lots vs. odd lots: two different trading paths

To allow investors with limited funds to participate, Taiwan stocks offer two trading modes:

Whole lot trading is the traditional large-investor method, with a minimum unit of one lot (1000 shares). Trading hours are 9:00-13:30 during the day and 14:00-14:30 after hours. Because of high trading volume and participation, whole lot trading has strong liquidity, small bid-ask spreads, and quick execution. But the downside is the high threshold—buying one lot of TSMC costs at least NT$561,000.

Odd lot trading involves buying and selling less than one lot, between 1 and 999 shares. Its trading hours are slightly different: 9:00-13:30 during the day and 13:40-14:30 after hours. Odd lot trades are matched via “call auction” every minute, not immediate continuous trading. This results in lower liquidity and larger spreads, but the advantage is a much lower capital requirement—you can buy TSMC for just a few thousand NT dollars.

Why can you buy one share in the U.S., but in Taiwan, one lot starts at 1000 shares?

This difference stems from the market design philosophy. U.S. stocks are traded in “one share” units, while Taiwan stocks are traded in “lots” of 1000 shares. This reflects different historical developments and investor structures.

Taiwan adopted the lot system partly out of tradition and partly to ensure market liquidity and size. Trading in larger lots makes big transactions easier and attracts institutional investors.

The U.S. market, designed to be more retail-friendly, allows investors to start with just a few hundred dollars to buy Apple or Microsoft shares. That’s why U.S. stocks are more accessible to global retail investors.

For example, compare the cost of TSMC in both markets:

• Taiwan: NT$561 per share × 1000 shares = NT$561,000 (~USD 18,000)
• U.S.: $95 per share × 1 share = $95

Same company, but in Taiwan, you need NT$561,000 to buy a lot; in the U.S., just $95 for one share. This “trading unit difference” leads to vastly different entry costs.

What determines the price of a single share?

Since we’ve explained how to interpret the cost of one lot or one share, the next question is: Why are some stocks cheap and others very expensive? The underlying factors driving stock prices fall into three main categories:

1. Company fundamentals—performance determines stock price

A company’s operational performance is the most important factor. Investors analyze financial statements, revenue growth, profit margins, cash flow, etc. A company with stable growth and high profitability will have its stock price driven higher. Conversely, poor performance or losses lead to lower prices. Why is TSMC’s stock price so high? Because it’s a global leader in semiconductors with sustained high profits.

2. Macro-economic environment—overall economic impact

Indicators like GDP growth, interest rates, inflation, and unemployment influence investor sentiment and capital flows. When the economy is strong, confidence rises and stocks go up; during downturns, stocks tend to fall. In 2023, tech stocks surged due to optimism about AI and economic recovery.

3. Market sentiment and expectations—psychological factors

Investor emotions can cause sharp swings. Negative news (scandals, regulation, geopolitical risks) can trigger panic selling, rapidly dropping prices. Positive news (new product launches, mergers, earnings beats) can attract buyers and push prices higher. Major global events (pandemics, wars) also cause volatility.

These three factors interact and jointly influence stock prices. Understanding this helps explain why some stocks are cheap and others expensive, and enables more informed investment decisions.