Why is there such a big difference between the Taiwan stock market and the US stock market? Only after converting the stock prices to TWD did I suddenly realize.

Many novice investors in the stock market often have a question: Why does buying one share of the same company’s stock cost tens of thousands of NT dollars in Taiwan stocks, while only a few thousand dollars in U.S. stocks? The principle behind this is not complicated; it mainly stems from fundamental differences in trading units and quotation methods between the two markets. Today, let’s break down the logic of stock pricing, understand the process of converting stock prices to TWD, and explore why the same stock can have such a huge price gap.

The Essence of Stock Price: How Much Is One Share Worth

The definition of stock price is quite straightforward—it is the transaction price of a stock in the market, reflecting how much money an investor needs to spend to buy or sell one share of stock. This price is not fixed; it fluctuates in real-time based on the latest transaction prices between buyers and sellers.

Stock prices are usually expressed per share, and different countries use different currencies. For example, in the U.S., the quotation unit is USD; in Taiwan stocks, it is TWD. For instance, if TSMC’s quote is 561 NT dollars per share at a certain time, it means buying one share of TSMC costs 561 NT dollars.

The same stock’s prices in different markets are not exactly the same because of variables like exchange rates, trading hours, liquidity, etc. But regardless of the market, stock prices are jointly determined by the company’s profitability, investor expectations, and market supply and demand.

One Taiwan Stock “Sheet” Equals 1000 Shares — The Key Difference

To understand “how much does one sheet cost,” we must first clarify Taiwan’s unique trading unit setting.

The basic trading unit in Taiwan stocks is “one sheet,” which equals 1000 shares. This means that when trading “whole shares” in Taiwan’s stock market, the minimum purchase unit is 1000 shares. In contrast, U.S. stocks do not have the concept of “sheets”; the trading unit is “one share,” and investors can buy just one share.

This difference creates a substantial threshold. Take TSMC as an example:

• Taiwan stock price: 561 NT dollars/share → Buying one sheet (1000 shares) costs 561 × 1000 = 561,000 NT dollars (about 560,000)
• U.S. stock price: 95 USD/share → Buying one share costs 95 USD (about 3,000 NT dollars)

The difference is nearly 20 times, which is not due to the intrinsic value of the stock but results from the trading unit setting and the conversion of prices.

Par Value vs. Stock Price: Don’t Confuse Them

Many people confuse “par value” and “stock price.” Par value is set when the company is established and records the original capital contributed by shareholders. In Taiwan, the fixed par value system was historically used, with most listed companies having a par value of 10 NT dollars. But par value and actual stock price are not directly related; stock prices are determined by the market and fluctuate constantly.

A company’s stock may have a par value of 10 NT dollars, but its market price could be hundreds or even thousands of NT dollars. Investors need to look at the current market price to know how much one share costs in reality, not the par value.

Whole Share Trading vs. Odd-Lot Trading: The Retailer’s Democratic Choice

Because the price threshold for whole shares is high, Taiwan stocks have introduced “odd-lot trading.” This allows investors to buy less than 1000 shares (1–999 shares), significantly lowering the entry barrier.

The differences between these two trading modes are as follows:

Although odd-lot trading lowers the entry barrier, its liquidity is relatively weaker, and transaction prices may deviate from intraday prices. Investors should be aware of this trade-off.

U.S. Stock One Share vs. Taiwan Stock One Sheet — The Real Comparison After Converting to TWD

The fundamental trading logic differences between U.S. stocks and Taiwan stocks determine their huge price disparities.

Taking TSMC as a specific example, this company is listed on both markets:

• Taiwan (Code 2330): stock price 561 NT dollars → buying one sheet (1000 shares) costs 561,000 NT dollars
• U.S. (Code TSM): stock price 95 USD → buying one share costs 95 USD, which is about 3,000 NT dollars after conversion

This explains why many small-investment investors prefer trading in U.S. stocks—the threshold is much lower, and fees are cheaper.

Real-World Example: How Price Fluctuations Affect Returns

Take Tesla (TSLA) as an example, observing its sharp short-term price movements:

• January 6, 2023: 101.81 USD/share
• August 2, 2023: 254.11 USD/share
• Increase: about 150%

In just seven months, Tesla’s stock rose from 101.81 USD to 254.11 USD, illustrating how stock prices can fluctuate significantly based on market conditions. The same investment amount, entered at different times, can lead to vastly different returns.

Similarly, Taiwan Cement (1101.TW) on April 30, 2024, was quoted at 32.10 NT dollars per share. If an investor bought a whole lot (1000 shares), they would pay 32,100 NT dollars; with odd-lot trading, they could start with just a few hundred or even a few dozen NT dollars.

What Drives Stock Prices to Keep Fluctuating?

Stock price fluctuations are mainly influenced by three major factors:

Company fundamentals: Financial health, profitability, and long-term prospects are core indicators for investors. Good performance tends to attract more buying, pushing prices higher; poor performance leads to selling.

Macroeconomic environment: Indicators like GDP, interest rates, and inflation directly impact corporate earnings expectations. During economic downturns, the overall stock market often faces correction pressures.

Market sentiment and event shocks: Investors’ optimism or pessimism can amplify price swings. Negative news, political instability, global crises (like pandemics), and other events can quickly change market expectations, causing short-term volatility.

Understanding these factors helps investors view stock price movements more rationally and avoid being dominated by short-term emotions.

Start Your Stock Investment Journey

Whether in Taiwan stocks or U.S. stocks, the first step is to choose a suitable platform and understand trading rules. You can get started with these three simple steps:

1. Register an account: Fill in the necessary information and submit an account opening application
2. Prepare funds: Transfer funds into your trading account via bank transfer or other methods
3. Start trading: Select target stocks and place orders at the right time

Mastering the logic of converting stock prices to TWD, understanding the differences in trading units, and recognizing the core factors influencing stock prices will help you make smarter decisions in the stock market.