How much does one share of stock cost? Complete analysis of the trading units for full and fractional shares in Taiwan stocks

Before entering the stock market, many investors face the same question: Why are stocks in Taiwan so expensive to buy, while in the US they are relatively cheaper? The fundamental reason for this difference lies in the completely different trading unit systems adopted by each market.

Basic Concepts of Stock Price, Face Value, and One Share

Stock price is the real-time trading price of a stock in the market, fluctuating continuously based on buy and sell transactions. Each country’s stock trading is denominated in its own currency—US stocks are priced in US dollars (USD), while Taiwan stocks are priced in New Taiwan Dollars (TWD).

In a corporation with a shareholding system, “one share” is the basic unit of ownership. For example, if a company has a capital of 10 million TWD divided into 1 million shares, then the face value per share is 10 TWD. It is important to note that the face value is merely a reference for recording initial capital contribution and has no direct relation to the stock price. The actual stock price is determined by the company’s profitability and market investors’ expectations.

The Special Trading Feature of Taiwan Stocks: One Board Equals 1000 Shares

A unique concept in Taiwan stock trading is the “one board,” which equals 1000 shares. This means that if investors want to trade in whole shares (buying or selling in multiples of one board), the cost can be quite high.

For example, TSMC’s stock price is 561 TWD. The cost to buy one board of TSMC stock is: 561 TWD × 1000 shares = 561,000 TWD (about 560,000 TWD)

This amount is a significant financial barrier for most retail investors. To address this issue, the Taiwan stock market introduced odd-lot trading, allowing investors to buy and sell in small units of 1–999 shares, greatly lowering the participation threshold.

Difference Between Whole-Board Trading and Odd-Lot Trading

Due to the relatively lower liquidity of odd-lot trading, investors are advised to prioritize whole-board trading when they have sufficient funds.

Advantages of Stock Trading Units in the US: Priced Per Share

Unlike Taiwan, US stocks are traded in units of “one share”, with no “one board” concept. This design significantly reduces the entry cost into the US stock market compared to Taiwan.

For example, considering TSMC’s listings in both markets:

• Taiwan (Code 2330): stock price 561 TWD, total cost for one board is about 560,000 TWD
• US (Code TSM): stock price around $95 USD, total cost for one share is only $95 USD (about 3,000 TWD)

The main differences in trading between US and Taiwan are as follows:

Core Factors Influencing Stock Prices

Stock prices do not fluctuate randomly but are affected by multiple factors:

Company fundamentals are the primary factors, including financial health, profitability, and growth prospects. Financial reports help assess a company’s strength; companies with strong performance are more likely to attract investors, pushing up their stock prices.

Macro-economic environment such as GDP, interest rates, and inflation also broadly impact the overall stock market. During economic booms, stocks tend to perform strongly; during recessions, prices often decline.

Market investor sentiment is equally important. Negative news, political instability, or global economic crises (like pandemics) can trigger panic selling, leading to market downturns.

Practical Steps for Beginner Investors

Getting started with stock trading involves just three simple steps:

1. Register: Fill out personal information and submit an account opening application
2. Deposit Funds: Quickly fund your account through various methods
3. Trade: Identify trading opportunities and place buy or sell orders

After understanding the cost structure of one board and the differences in trading units, investors can better evaluate their capital needs and choose the most suitable trading method.