The big reveal of stock trading units: How many shares in 1 lot? Why are US stocks cheaper and Taiwan stocks more expensive?

Many investors new to the stock market are often puzzled by this question: why do trading costs vary so much across different stock markets? You can buy a share of US stocks for a few hundred dollars, but a single Taiwan stock lot might cost tens of thousands of dollars. The fundamental reason behind this lies in the different regulations each country has regarding trading units.

Basic Concepts of Stocks: The Difference Between Stock Price and One Share

Before delving into 1張幾股, we need to understand two core concepts: stock price and one share.

What is stock price? The stock price refers to the trading price of a single unit of stock in the market, expressed in different currencies depending on the country. US stocks are priced in USD, Taiwan stocks in NTD, and Hong Kong stocks in HKD. This price is not fixed; it fluctuates constantly based on real-time matching of buy and sell orders.

What does one share represent? A listed company is essentially a corporation divided into multiple shares. Each share represents a portion of ownership. One share is the smallest trading unit in stock transactions. For example, as of December 23, 2024, TSMC (2330.TW) has a stock price of 1080 NTD per share, meaning the trading price for one share is 1080 NTD.

However, there’s a common confusion: a high stock price does not necessarily mean the company’s value is high, nor does it mean the investment cost is high. The key is how many shares you need to buy at once. This brings us to the concept of a “lot.”

Trading Units in Different Countries’ Stock Markets: Why Does 1張幾股 Differ?

Different countries have entirely different rules regarding trading units:

US Stocks: Traded in single shares

• Trading unit: 1 share
• Features: Flexible; investors can buy 1, 2, or any number of shares
• Example: Tesla (TSLA) is currently quoted at $420. If you want to invest only $420, you can buy 1 share; with $1,050, you can buy 2.5 shares (if fractional share trading is supported)

Taiwan Stocks: Traded in lots, 1張幾股? 1000 shares

• Trading unit: 1 lot = 1000 shares
• Features: Must buy in whole lots; minimum trading unit is 1000 shares
• Example: TSMC’s current price is 1080 NTD per share. Buying one lot costs 1080 × 1000 = 1,080,000 NTD (~35,000 USD), which is a high threshold for many small and medium investors

Hong Kong Stocks: Traded in “hands,” with the number of shares per hand varying based on stock price

• Trading unit: 1 hand (number of shares depends on stock price)
• Common sizes: 100, 500, 1000, or 2000 shares per hand
• Example: Tencent (0700.HK) is currently priced at 418 HKD per share. One hand is 100 shares, so trading one hand costs 418 × 100 = 41,800 HKD

Understanding Par Value and Market Price

When discussing 1張幾股, many people confuse a stock’s par value with its market price. These two are actually unrelated.

For example, in Taiwan, there was a fixed par value system where each share’s par value was set at 10 NTD. The par value is just a record of the original capital contribution by shareholders. It has no direct relation to the current market price — most Taiwanese listed companies have a par value of 10 NTD, but their stock prices can be 100 NTD, 1000 NTD, or higher. The market price is determined by the company’s profitability, future growth prospects, and investor expectations. As long as investors are optimistic about the company’s future, the stock price will continue to rise.

Market Comparison: The Truth About Investment Cost Differences

Now we can see why the costs of buying stocks in different markets vary so greatly:

US Stock Investment: Lowest threshold

• Minimum cost: You can start trading with just a few tens of dollars
• Flexibility: You can choose the number of shares freely based on your funds

Taiwan Stock Investment: Moderate threshold

• Minimum cost: Usually requires at least 100,000 NTD or more to buy any stock (assuming the stock price is below 1000 NTD)
• Actual situation: Most Taiwan stocks have trading costs between 300,000 and 1,000,000 NTD

Hong Kong Stock Investment: Relatively flexible but still requires capital

• Minimum cost: Depends on the number of shares per hand, typically between 10,000 HKD and 50,000 HKD
• Features: More flexible than Taiwan stocks but still requires higher initial capital compared to US stocks

Data Example: Trading Comparison of the Three Major Markets

Using data from December 23, 2024, comparing three popular stocks from different markets:

1. TSMC (Taiwan stock): Price 1080 NTD, 1 lot = 1000 shares, so buying one lot costs 1,080,000 NTD

2. Tesla (US stock): Price $420, buying 1 share costs $420; 10 shares cost $4,200

3. Tencent (Hong Kong stock): Price 418 HKD per share, 1 hand = 100 shares, so one hand costs 41,800 HKD

From these figures, it’s clear that the same amount of capital has vastly different purchasing power across markets. US investors can buy 7-8 different stocks with $3,000, diversifying their portfolio, while Taiwan investors with the same amount can only buy about 3 stocks.

Summary: Choosing the Market That Fits You

For investors with limited funds, the US market is clearly more advantageous. The rule of trading in 1 share allows for more precise control over transaction costs and asset allocation. While Taiwan and Hong Kong markets have their own features, their higher minimum trading costs pose challenges for small-scale investors.

Understanding the differences between 1張幾股, trading units, and stock prices is the first step toward becoming a mature investor. Regardless of which market you choose, grasping these basic rules is essential.