Odd Lot
A holding of fewer than 100 shares (or the standard board lot size) of a security, typically associated with shareholders who accumulated fractional or small-count positions through dividend reinvestment or stock splits.
Full Definition
An odd lot is a quantity of shares that is less than the standard trading unit, traditionally 100 shares (a 'round lot') in U.S. equity markets. Odd-lot shareholders often arise from corporate actions such as stock splits or dividend reinvestment plans. Issuers sometimes conduct odd-lot tender offers, specifically targeting shareholders with fewer than a minimum number of shares, to reduce the administrative cost of maintaining small accounts. Transfer agents identify and communicate with odd-lot holders as a distinct shareholder class. Editors should hyphenate 'odd-lot' as a compound modifier ('odd-lot offer', 'odd-lot tender') but leave it open as a noun ('an odd lot').
Usage
Usage note: Hyphenate when used as a compound modifier before a noun ('odd-lot holder', 'odd-lot offer'). Leave open as a standalone noun ('holds an odd lot'). Distinguish from 'fractional share', which is a portion of a single share rather than a sub-round-lot quantity of whole shares.
In Context
- "Shareholders holding an odd lot of fewer than 100 shares are encouraged to participate in the odd-lot tender offer to avoid disproportionate brokerage fees." — Odd-lot tender offer document
- "The transfer agent will calculate and credit fractional shares that result in odd-lot positions following the 3-for-2 stock split." — Corporate action notice