How are stocks traded?
Generally, stocks are traded in blocks or multiples of 100 shares, which are called round lots. An amount of stock consisting of fewer than 100 shares is said to be an odd lot. On an exchange, an order that involves both a round lot and an odd lotsay 175 shareswill be treated as two different trades and may be executed at different prices. Your broker will charge you a different commission on each trade, and will confirm each of them separately. These distinctions do not generally apply to trades executed in the OTC market.
A. Generally, stocks are traded in blocks or multiples of 100 shares, which are called round lots. An amount of stock consisting of fewer than 100 shares is said to be an odd lot. On an exchange, an order that involves both a round lot and an odd lot say 175 shares will be treated as two different trades and may be executed at different prices. Your broker will charge you a different commission on each trade, and will confirm each of them separately. These distinctions do not generally apply to trades executed in the OTC market.
