Lot

In general, any group of goods or services making up a transaction. In the financial markets, a lot represents the standardized quantity of a financial instrument as set out by an exchange or similar regulatory body. For exchange-traded securities, a lot may represent the minimum quantity of that security that may be traded.

In terms of stocks, the lot is the number of shares you purchase in one transaction. In terms of options, a lot represents the number of contracts contained in one derivative security.

The concept of lots allows the financial markets to standardize price quotes. For example, equity options are priced such that each contract (or lot) represents exercise rights for 100 underlying shares of common stock. With such standardization, investors always know exactly how many units they are buying with each contract and can easily assess what price per unit they are paying. Without such standardization, valuing and trading options would be needlessly cumbersome and time consuming.


Investment dictionary. . 2012.

Synonyms:

Look at other dictionaries:

  • lot — lot …   Dictionnaire des rimes

  • LOT — L Dernier grand affluent de la Garonne, sur sa rive droite, le Lot se compare naturellement à son voisin, le Tarn: même origine, le mont Lozère (ici le versant nord); même direction est ouest; longueur, bassin et alimentation de même ordre: 481… …   Encyclopédie Universelle

  • Lot — • Nephew of Abraham Catholic Encyclopedia. Kevin Knight. 2006. Lot     Lot     † Catholic Encyclopedia …   Catholic encyclopedia

  • LOT — (Heb. לוֹט), son of Haran, grandson of Terah, and nephew of abraham (Gen. 11:27). Upon Haran s death in Ur, Terah took Lot with him when, with Abraham and Sarah, he left the city for the land of Canaan. After Terah s death in Haran (11:32),… …   Encyclopedia of Judaism

  • LOT — (lo:t) steht für: beim Löten das Lötmittel, siehe Lot (Metall) eine alte Masseeinheit, siehe Lot (Einheit) in der Geometrie eine gerade Linie, die auf einer anderen Geraden oder einer Ebene rechtwinklig steht, siehe Lot (Mathematik) in der… …   Deutsch Wikipedia

  • Lot — (lo:t) steht für: beim Löten das Lötmittel, siehe Lot (Metall) eine alte Masseeinheit, siehe Lot (Einheit) ein Maß für den Feingehalt von Metall, siehe Lot (Feingehalt) in der Geometrie eine gerade Linie, die auf einer anderen Geraden oder einer… …   Deutsch Wikipedia

  • Lot — (l[o^]t), n. [AS. hlot; akin to hle[ o]tan to cast lots, OS. hl[=o]t lot, D. lot, G. loos, OHG. l[=o]z, Icel. hlutr, Sw. lott, Dan. lod, Goth. hlauts. Cf. {Allot}, {Lotto}, {Lottery}.] [1913 Webster] 1. That which happens without human design or… …   The Collaborative International Dictionary of English

  • Lot — may refer to:In economics and business: *Lot (real estate), a tract of land ** Parking lot, for automobiles *Lot, a set of goods, together for sale in an auctionPeople: *Lot (Bible) *King Lot, in Arthurian legend * Lot Kapuaiwa, Hawaiian king,… …   Wikipedia

  • Lot (AT) — Lot mit seinen beiden Töchtern (Lucas van Leyden ca. 1509) Lot war nach dem biblischen Bericht in der Genesis der Sohn von Haran und damit ein Neffe Abrahams, mit welchem er aus Mesopotamien mit Familie und Herden in Kanaan einwanderte, wo sie… …   Deutsch Wikipedia

  • LOT (F.) — LOT FERDINAND (1866 1952) Archiviste paléographe, Ferdinand Lot ne passa jamais l’agrégation, à laquelle il était violemment opposé, la traitant de bachotage supérieur. Il écrivit en 1906 et 1912 des pamphlets contre l’organisation de… …   Encyclopédie Universelle

  • lot — LOT, loturi, s.n. 1. Fiecare dintre porţiunile în care a fost împărţit un teren sau o pădure; parcelă. 2. Grup de obiecte sau de fiinţe cu trăsături comune. ♦ Grup de sportivi selecţionaţi în vederea formării unei echipe. ♦ Grup de produse… …   Dicționar Român


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