Odd-Lot Sales

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Odd-Lot Sales

Sales of securities in quantities of fewer than 100 shares. In general, most investors who make odd-lot sales are small investors. Because some investors consider small investors poorly informed and therefore wrong most of the time, they believe a large number of odd-lot sales may be a sign that stock prices will soon fall.
References in periodicals archive ?
Today odd-lot sales are just as likely to be made by professional traders as by individuals.
Lakonishok and Maberly find that the ratio of odd-lot sales minus odd-lot purchases divided by New York Stock Exchange (NYSE) trading volume was highest on Mondays indicating that individual investors sell more shares on Monday than on any other day of the week and therefore appear to have more influence on the market on Mondays.
They observe that the ratio of odd-lot sales to odd-lot purchases is dramatically higher at the close of the year relative to the beginning of the subsequent year.
Dyl and Maberly also notice that the ratio of odd-lot sales to odd-lot purchases is extremely high two days before Christmas and two days before New Year's Day.
Lakonishok and Maberly (1990) observe that the ratio of odd-lot sales minus odd-lot purchases divided by New York Stock Exchange (NYSE) trading volume is highest on Mondays.
Dyl and Maberly (1992) report that the ratio of odd-lot sales to odd-lot purchases is dramatically higher at the close of the year relative to the beginning of the next year.
These results are consistent with the observation of Lakonishok and Maberly (1990) that the ratio of odd-lot sales minus odd-lot purchases divided by NYSE trading volume was highest on Mondays.
Such a result is not consistent with the Dyl and Maberly observation that the ratio of odd-lot sales to odd-lot purchases is high two trading days before Christmas and New Year's Day.
Forest Oil Corporation (Forest) (NYSE:FST) announced today that it has commenced a voluntary odd-lot sales program through which shareholders beneficially owning an aggregate of 99 or fewer shares of Forest common stock may elect to sell all of their shares to Forest.