Odd lots

NYSE Turns Its Attention to Violations of Odd-Lot Transaction Rules

Excerpt:

NYSE odd-lot rules were designed to, among other things, create parity between large and small investors. The rules require orders under 100 shares to be executed by the specialist firm that handles trading in each stock at the same price as the next round-lot trade, regardless of whether the next round-lot trade is 100 or 100,000 shares. In doing so, the rules attempt to offer small investors a “leg-up” by requiring small trades (i.e., trades under 100 shares) to receive the same price as larger transactions, thereby lessening the likelihood of small orders receiving an inferior price as compared to large block orders. In addition, under NYSE rules, members have an obligation to consolidate, buy or sell a customer's odd-lot orders if the share amount of such orders exceeds 100 shares.4

Comment: An even lot is 100 shares of stock. Odd lot trading would be less than 100 shares. As a small investor I sometimes buy just 10 shares of a stock .. an "odd lot"