How many shares are in one Taiwan stock lot? A complete analysis of stock trading units

Many newcomers to the stock market often encounter the same confusion: why is the entry cost for Taiwan stocks so high, while U.S. stocks are much cheaper? The secret behind this “vast difference” lies in the stock trading unit settings. Exactly what does one “lot” consist of? How should we interpret stock prices? Let’s understand these trading rules from the ground up.

The True Meaning of Stock Price

Before discussing trading units, it’s essential to clarify what a stock price is. The stock price refers to the amount an investor needs to pay to buy or sell one share of stock in the market, and it constantly fluctuates based on real-time matching of buy and sell transactions.

For example, if TSMC’s stock price shows as 561 New Taiwan Dollars, this indicates the transaction price per share. Similarly, if Tesla’s stock price in the U.S. is $254, it also refers to the price of a single share. Stock prices fluctuate due to market supply and demand, but they always represent the transaction price of “one share.”

International Differences in Trading Units: How Many Shares Are in One Lot?

This is the key point. Taiwan stocks and U.S. stocks use completely different trading unit systems:

• Taiwan stocks: Use “one lot” as the basic trading unit, and one lot equals 1,000 shares.
• U.S. stocks: Use “one share” as the trading unit, with no concept of a “lot.”

In other words, one lot equals 1,000 shares, which is a unique setting in the Taiwanese stock market.

Face value ≠ Stock price, don’t confuse them

Many people easily confuse face value and stock price. Face value is the nominal value set when the company issues stocks (historically fixed at 10 NT dollars in Taiwan), while the stock price is the actual market transaction price. Face value is only used to record the original capital contribution of shareholders and has no direct relation to stock price fluctuations. Even if a company’s face value remains fixed at 10 NT dollars, its stock price can rise to hundreds of NT dollars or fall to single digits.

How Much Does One Lot of Stock Cost?

Since one lot is 1,000 shares, the calculation is straightforward. Taking TSMC as an example:

If TSMC’s stock price is 561 NT dollars, buying one lot of TSMC costs: 561 × 1,000 = 561,000 NT dollars

This means purchasing a full lot of TSMC requires at least 560,000 NT dollars in capital. For most retail investors, this threshold is undoubtedly too high. To address this, the Taiwan stock market introduced the “odd lot” trading mechanism, allowing investors to buy less than one full lot.

Full Lots vs. Odd Lots: Trade-offs in Flexibility

To lower the entry barrier, Taiwan stocks distinguish between two trading modes:

Simply put, full lot trading involves 1,000 shares, offering high liquidity but requiring large capital; odd lot trading is the opposite, with lower capital needs but slower transactions.

Comparing Trading Costs: U.S. vs. Taiwan Stocks

How big is the difference in trading costs for the same company across the two markets? Using TSMC as an example:

Taiwan stock purchase: Stock price 561 NT dollars × 1,000 shares = starting at 560,000 NT dollars
U.S. stock purchase: Stock price $95 × 1 share ≈ $95 (about 3,000 NT dollars)

The entry costs differ significantly. This is not just due to exchange rates but fundamentally because of the difference in trading units.

Overview of Market Environment Differences

U.S. stocks are not only more flexible in trading units but also have lower trading costs, making them more friendly to small investors.

Factors Driving Stock Price Fluctuations

Whether it’s one lot or one share, stock prices are influenced by the following factors:

Company Fundamentals
A company’s financial health, profitability, and growth prospects are core to its stock price. Well-performing companies naturally attract more investors, pushing prices higher.

Macroeconomic Environment
GDP growth, interest rate policies, inflation, and other macro factors influence the overall market trend. During economic booms, stocks tend to rise; during recessions, they decline.

Market Sentiment
Collective investor psychology—optimism or panic—often drives short-term volatility. Negative news, geopolitical risks, or pandemic crises can trigger sell-offs.

Conclusion: Understanding the Rules to Invest Smartly

In summary: How many shares are in one lot? In Taiwan stocks, one lot equals 1,000 shares, and this is the biggest difference between Taiwan and U.S. stocks. Once you understand this, you can explain why U.S. investors can buy TSMC for around 3,000 NT dollars, while Taiwanese investors need to prepare 560,000 NT dollars. Knowing the rules allows you to choose an investment strategy suitable for your capital—whether focusing on accumulating Taiwan stocks via odd lots or shifting to U.S. stocks, buying one share at a time.

Whichever path you choose, mastering the basic concepts is always the first step toward successful investing.