An offer made by the corporation or its agent to purchase shares from odd-lot shareholders and immediately resell them in the market, usually in round-lots to institutions, thus saving the corporation the expense of merely buying shares back.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A situation in which a publicly-traded company buys back its own shares from odd lot shareholders, repackages them as round lots, and resells them. Institutional investors are the most common buyers in odd-lot resales. Odd-lot resales save a company from the expense of a pure stock buyback, and also help make its shareholder records tidier.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved