How much does one share of stock cost? An analysis of transaction cost differences across various markets

Want to invest in stocks but get overwhelmed by all the rules? How much does one share cost? How much capital do you need to buy in one go? These basic questions often determine whether you can smoothly enter the market. Interestingly, the same stock investment in the US can be done with a few hundred dollars, while in Hong Kong and Taiwan, you need tens of thousands of dollars to get started. The reason behind this lies in the differences in trading units and share prices across countries.

What is stock price? Understand this before buying or selling stocks

In the stock market, the stock price refers to how much an investor needs to pay at a given moment to buy (or sell) one share of stock. It fluctuates in real-time based on bids from buyers and sellers, and each transaction updates the stock price.

Different countries use different currencies to quote stock prices. The US stock market uses US dollars (USD), Taiwan uses New Taiwan Dollars (NTD), and Hong Kong uses Hong Kong Dollars (HKD). For example, at a certain point, TSMC’s stock price might be 1080 NTD, meaning buying one share costs 1080 NTD.

Note that stock price and face value are two different concepts. Face value (e.g., 10 yuan) records the original capital contribution of the company’s shareholders, while the stock price is determined by the company’s profitability and investor expectations. As long as investors remain optimistic about a company’s future, its stock price will keep rising.

How much does one share cost? Market price tells you everything

For ordinary investors, to find out how much a stock costs per share, simply check the current market price.

For example, in the US, Tesla (TSLA) was priced at $101.81 per share on January 6, 2023, and by August 2, 2023, it had risen to $254.11 per share. In less than seven months, the cost to buy one Tesla share nearly doubled. This clearly shows that stock prices are constantly changing.

The same applies to Taiwan stocks. On April 30, 2024, Taiwan Cement (1101.TW) was priced at 32.10 NTD per share. This price adjusts continuously during trading sessions.

Different markets have vastly different trading units, which is the real reason for cost differences

Once you understand stock prices, you’ll realize the key issue lies in the trading unit regulations of different markets. This is the true reason why investing in stocks can be cheap in some markets and expensive in others.

From the table, US stocks are the most flexible. Investors can buy just one share with minimal cost. Taiwan requires a minimum purchase of 1 lot (1,000 shares), and Hong Kong’s minimum is 1 lot (variable number). This explains why many perceive Taiwan stock investment as having a high threshold—not because the share price is high, but because you must buy more shares at once.

How much does one share cost determine your actual starting capital

A detail often overlooked: when we say “the price of one share,” we are actually setting the foundation for larger investments later.

If you want to buy one lot (1,000 shares) of a Taiwanese company, you need to look at the stock price per share first. Multiply that by 1,000 to find out how much capital you need. For example, if a Taiwanese stock is priced at 50 NTD per share, buying one lot costs 50×1000=50,000 NTD.

In contrast, US investors are much more flexible. Want to invest $100? Sure. Want to invest $1,000? Also fine. You decide how many shares to buy at once. This flexibility makes US stocks the preferred market for investors with limited funds.

Limited funds? Other ways to enter the market

If your capital is limited but you want to get into Hong Kong or Taiwan stocks, there are new options. Contract for Difference (CFD) platforms allow investors to use leverage, controlling larger positions with smaller capital. This way, even with just a few thousand dollars, you can participate in major global stock markets.

Choosing a reputable, regulated CFD platform is crucial to ensure fund safety and fair trading. Many platforms also offer demo accounts, allowing beginners to familiarize themselves with market rules using virtual funds before trading with real money—greatly reducing risk.

Summary: Understanding the stock price per share helps you accurately calculate your investment costs

To sum up: stock price per share depends on real-time market prices, while the actual capital you need depends on stock price multiplied by the minimum trading unit. US stocks are the most flexible (minimum 1 share), Taiwan requires a higher threshold (minimum 1 lot = 1000 shares), and Hong Kong falls in between. Once you understand these rules, you can choose the most suitable market and investment method based on your funds.