Definition of Odd Lot
What is an Odd Lot
An odd lot is a security holding that contains less than the normal trading unit. In general, a trade of 100 shares or multiples of 100 shares is a normal trading unit when purchasing or selling a stock position. A trade of 25 shares would be considered an odd lot transaction.
Glossary of Terms and Phrases
A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.
We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.