Share Units: Buy from 100 Shares
The minimum trading unit for Japanese stocks is 100 shares, so one unit costs share price × 100; holdings of fewer than 100 shares (odd-lot shares) are traded through brokers' dedicated services.
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Text version · Japan Stock Rules, lesson 2: “Share Units: Buy from 100 Shares”
The minimum trading unit for Japanese stocks is 100 shares, so one unit costs share price × 100; holdings of fewer than 100 shares (odd-lot shares) are traded through brokers' dedicated services.
Buy at least 100 shares
The minimum trading unit for Japanese stocks is the share unit. Since 2018 every listed company uses 100 shares, so one unit costs at least share price × 100.
Not enough money? Buy odd lots
Many brokers offer odd-lot shares (below one unit) services that let you trade one share at a time. But the timing, pricing method and fees differ from normal trading, so read your broker's terms before ordering.
Things you only get with 100 shares
Odd-lot shares still receive dividend pro rata, but carry no vote at shareholder meetings; many companies' shareholder perks also require at least 100 shares.
Key takeaways
- Since 2018 every listed company's share unit has been 100 shares: at a share price of ¥3,200, one unit costs ¥320,000.
- Odd-lot shares, fewer than 100, can be traded one share at a time through many brokers' dedicated services, but the timing, pricing method and fees differ from normal trading.
- Odd-lot shares receive dividends in proportion to the holding but carry no vote at shareholder meetings; many companies' shareholder perks also require at least 100 shares.
Try it yourself
You can do these exercises in this lesson's interactive simulation:
- Share price ¥3,200, budget ¥500,000: how many units can you buy? How much is left?
- Drag the share price to about ¥6,000: what's the minimum cost of one unit? Is your budget still enough?
- Switch to “odd-lot shares”: how many shares does the same budget buy?
- Go back to “unit shares” and set the shares you want to 150: can you place the order? What's the most it can be changed to?
Quiz and explanations
- 1. A stock is ¥4,500. What's the minimum cost of one unit, before fees?
- Answer: ¥450,000.One unit is 100 shares: 4,500 × 100 = ¥450,000.
- 2. How do odd-lot shares usually differ from full units?
- Answer: They carry no vote at shareholder meetings, and they fill differently.Odd-lot shares still receive dividends pro rata but have no vote; the fill timing and pricing method depend on the broker's service.
- 3. Why are high-priced Japanese stocks unfriendly to small accounts?
- Answer: Because you must buy at least 100 shares, so one unit costs a lot when the share price is high.The minimum unit is 100 shares: for a ¥20,000 stock, one unit costs ¥2 million.
Terms in this lesson
- board lot (Board Lot): The exchange's minimum trading unit. A-shares and Japanese stocks trade in lots of 100 shares, each Hong Kong stock sets its own, a Taiwan lot is 1,000 shares, and US and Korean stocks can be bought from 1 share.
- dividend (Dividend): Part of a company's profit paid out to shareholders according to how many shares they hold.
- odd-lot shares (below one unit) (Odd-Lot Shares (Below One Unit)): Holdings of fewer than 100 shares. Many brokers let you trade one share at a time, but the timing, pricing and fees differ from normal trading.
- shareholder perks (Shareholder Perks): Extra benefits many Japanese listed companies give shareholders, such as gift vouchers, meal vouchers or their own products; like dividends, you must be a registered shareholder on the record date to get them.
- share unit (Share Unit): The minimum trading unit for Japanese stocks. Since 2018 every listed company uses 100 shares, so the minimum investment is share price × 100.