The biggest confusion about buying stocks: Why are US stocks so cheap, while Taiwan stocks are so expensive? Clarify the differences in trading units once and for all.

Many investors share the same question: Why are stocks in the US stock market so cheap, while in the Taiwan stock market it takes hundreds of thousands to buy just one share? The fundamental reason behind this lies in the trading unit.

The Big Difference in Trading Units Between Taiwan and US Stocks

First, to understand a basic concept: Taiwan stocks have a trading unit of “one lot” equal to 1000 shares, while US stocks are traded directly as “one share”.

This means:

• Taiwan: Minimum trading unit = 1 lot = 1000 shares
• US: Minimum trading unit = 1 share

In other words, how many shares are in one lot of US stocks? There is simply no concept of “lot” in the US market. It’s this difference that creates the illusion of vastly different prices.

How to Read Stock Prices? How Much Is One Share?

Many beginners get confused about this key point: The stock price represents the transaction price of one share. To see how much one share costs, just look at the current market price.

For example:

• Tesla (TSLA) in the US: In January 2023, one share was $101.81, and by August it rose to $254.11
• TSMC (2330) in Taiwan: The current price per share is 561 New Taiwan Dollars

The face value and the stock price are two different things. The face value is just a record from when the company was established; the stock price is truly determined by the market.

How Much Does One Lot of Stock Cost? This Is the Big Question

Now, here’s the key point. Suppose TSMC’s stock price is 561 NT$ per share, then:

One lot of TSMC = 561 × 1000 = 561,000 NT$

This is why ordinary retail investors say Taiwan stocks are expensive — because just buying a full lot (starting from one lot) costs tens of thousands of NT$. In contrast, US stocks are different; you can buy one share for about $95, which costs roughly 3,000 NT$.

Overview of Trading Rules: Taiwan vs. US Stocks

The Mechanism of Odd-Lot Trading in Taiwan

To lower the entry barrier, Taiwan introduced odd-lot trading — that is, buying and selling less than 1000 shares (1~999 shares).

Features of odd-lot trading:

• Trading hours: 9:00-13:30 during the day, 13:40-14:30 after hours
• Matching method: Call auction, matched once per minute
• Advantages: Lower capital requirement, but liquidity is relatively poor

In comparison, full-lot trading (starting from 1 lot) has much higher liquidity, but requires a larger amount of capital. Most retail investors cannot invest tens of thousands at once, so odd-lot trading becomes a popular choice.

Who Decides Stock Prices? The Three Main Factors

The final stock price of one share is determined by the market, mainly influenced by:

1. Company fundamentals — Companies with good performance and healthy finances attract more buyers, causing the stock price to rise naturally.

2. Macroeconomics — Indicators like GDP, interest rates, and inflation influence the overall market trend.

3. Market sentiment — Investors’ optimism or panic can trigger buying or selling behaviors, directly causing stock price fluctuations.

Once you understand these basics, you’ll see why Taiwan stocks and US stocks seem to have such different prices — fundamentally, it’s the difference in trading units and market systems, not which market’s stocks are more valuable.