An odd lot is 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.

While odd lots can include any number of shares between one and 100, a round lot is any lot of shares that can be evenly divided by 100. For example, 75 shares would be an odd lot since it is below 100 shares, while 300 shares would be a round lot since it can be evenly divided by 100.

Since an odd lot is considered fairly insignificant to larger institutions, a company may choose to eliminate any odd holdings from the marketplace. This can include buying out the associated shareholder at a premium, offering additional shares to the shareholder to create a round lot, or engaging in a reverse split designed to result in the odd lot becoming equivalent to less than one share to pay the investor cash for a residual holding.

www.jstor.org [PDF]

… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

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… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

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… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

www.jstor.org [PDF]

… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

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… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

www.jstor.org [PDF]

… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

www.jstor.org [PDF]

… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

papers.ssrn.com [PDF]

… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

www.tandfonline.com [PDF]

… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

jot.pm-research.com [PDF]

… and buying activity that cause the ratios of sales to purchases of odd lots to change … We assume that odd-lot trading is a good proxy for trading by individual investors … Relationship between Return and Market Value of Common Stocks." Journal of Financial Economics, 9 (March …

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