odd lot

Definition

Less than 100 shares of a stock; or less than 10 shares of a very thinly traded stock. Some brokerages charge higher commissions for such transactions (often 1/8 of a point per share, called the differential). also called broken lot or uneven lot. opposite of round lot.

Use odd lot in a sentence

You may want to only take on an odd lot at first before you get to deeply involved in that risk.

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A situation where shares of a stock do not exceed 100 or does not exceed 10 shares of a narrowly traded stock and brokerages charge higher commissions for them is known as odd lot

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Mr. Jones has been wanting to gradually purchase shares of First People's Bank to add to his portfolio. This stock is a very thinly traded stock, but due to its price of $450 per share he can only afford one per month. His CFP charges him a higher fee due to considering this equity an Odd Lot.

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