Odd Lot

An order amount for a security that is less than the normal unit of trading for that particular asset. Odd lots are considered to be anything less than the standard 100 shares for stocks. Trading commissions for odd lots are generally higher on a percentage basis than those for standard lots, since most brokerage firms have a fixed minimum commission level for undertaking such transactions.

Odd lots may inadvertently arise in an investor's portfolio through reverse splits or dividend reinvestment plans. For example, a 1-for-8 reverse split of a security, of which the investor holds 200 shares, will result in a post-split amount of 25 shares.

While trading commissions for odd lots may still be higher than for standard lots on a percentage basis, the popularity of online trading platforms and the consequent plunge in brokerage commissions means that it is no longer as difficult or expensive for investors to dispose of odd lots as it used to be in the past.

Investment dictionary. . 2012.

Look at other dictionaries:

  • odd–lot — adj: of, relating to, or being the type of worker considered under the odd lot doctrine an odd–lot worker without stable employment Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • odd lot — n: a quantity of stock that is less than the usual rounded amount (as 100 shares) compare round lot Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. odd lot …   Law dictionary

  • odd lot — odd′ lot′ n. 1) a quantity or amount less than the conventional unit of trading 2) bus (in a stock transaction) a quantity of stock less than 100 shares • Etymology: 1895–1900 odd′ lot′, adj odd′ lot′ter, n …   From formal English to slang

  • odd´-lot´ — odd lot, a quantity of goods or securities smaller than the normal or standard amount used in the trading: »On the New York Stock Exchange, the usual unit of trading is 100 shares, called a “round lot.” Smaller units are referred to as “odd lots” …   Useful english dictionary

  • odd lot — ☆ odd lot n. an amount smaller than the usual unit of trading; specif., a quantity of less than 100 shares of stock in a transaction odd lot adj …   English World dictionary

  • odd lot — odd lot, adj. 1. a quantity or amount less than the conventional unit of trading. 2. Stock Exchange. (in a transaction) a quantity of stock less than the established 100 share unit for active issues or the 10 share unit for designated inactive… …   Universalium

  • odd-lot — odd lot·ter; …   English syllables

  • odd-lot — See odd lot. * * * …   Universalium

  • odd lot — noun a) A block of shares of stock that is not a multiple of some number, usually 100. Everard liked to shop at the stores specializing in odd lots down by the docks, as he was a cheapskate. b) A set of leftover goods, of a quantity less than an… …   Wiktionary

  • odd lot — A trading order for less than 100 shares of stock. Compare round lot. Bloomberg Financial Dictionary A block of securities bid or offered which is smaller than the standard lot size for that particular security. Exchange Handbook Glossary …   Financial and business terms

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