Odd lot
Odd lot refers to a stock trade involving less than 100 shares. These trades are considered to be „odd“ because they deviate from the standard trading unit of 100 shares. Odd lots are typically traded by retail investors or small traders who do not have the financial resources to purchase larger quantities of shares.
For example, if an investor wants to purchase 75 shares of a company’s stock, they would be considered to be trading an odd lot. Similarly, if an investor wants to sell 50 shares of a stock, that would also be considered an odd lot trade.
Odd lot trades are often subject to higher transaction costs and may be executed at less favorable prices than round lot trades, which involve multiples of 100 shares. However, with the rise of online trading platforms and the increasing popularity of fractional share investing, odd lot trades have become more common and accessible to individual investors.
While odd lot trading may not be as efficient or cost-effective as trading in round lots, it still provides investors with the opportunity to participate in the stock market and build a diversified portfolio.
- Odd lots are stock trades involving less than 100 shares.
- They are often executed by retail investors or small traders.
- Odd lot trades may incur higher transaction costs and less favorable prices.
For more information about odd lots, you can visit Wikipedia.