In the realm of finance and investments, an odd lot refers to a quantity of shares that is less than the standard trading unit. While the standard trading unit typically consists of 100 shares, an odd lot can be any number less than that, such as 99 shares, 50 shares, or even a single share.

Odd lots are often the result of individual retail investors buying or selling shares in quantities that do not align with the standard trading unit. Due to their smaller size, odd lots are often associated with higher transaction costs and less favorable pricing. This is because trading systems and market makers may offer more competitive pricing and lower transaction fees for standard trading units.

Odd lots are less common among institutional investors, who generally trade in larger quantities. However, with the rise of online brokerage platforms and the ability for retail investors to participate in the stock market, odd lots have become more prevalent.

Despite their disadvantages, odd lots can still be traded, and some investors may choose to engage in odd-lot trading strategies. These strategies may involve taking advantage of price inefficiencies or attempting to profit from short-term market fluctuations.

An odd lot in finance refers to a stock transaction that involves fewer shares than the standard trading unit, known as a round lot. Traditionally, a round lot is 100 shares for most stocks. An odd lot, therefore, is any order for less than 100 shares, such as 5, 23, or 70 shares. Investors who buy odd lots often face slightly higher transaction costs because these trades can be less efficient for brokers to process. Historically, odd lots were viewed as less significant, and large institutional traders sometimes interpreted them as indicators of small retail investor behaviour. Today, with more advanced trading systems and fractional share options, odd-lot trading has become more common and is accessible to many retail investors seeking smaller investments.