What is an Odd-Lotter?
How Does an Odd-Lotter Work?
For example, let's assume John wants to buy a few shares of Disney stock as a present for his son's 12th birthday. John calls his broker with a buy order for 12 shares of Disney stock, which is an odd lot. This makes John an odd-lotter.
Why Does an Odd-Lotter Matter?
Typically, individual investors are the most likely to be odd-lotters. Because it takes much more work to fill an order for an odd lot, John's broker may charge a higher commission. The broker may have to purchase a round lot (100 shares) and then break the shares up to provide John with his 12 shares.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
If you're like the majority of investors, I'll bet you have a negative view of stocks trading on the "...Read More →
Updated: September 4, 2012 1. The highest-price stock currently sold on the ...Read More →