Round lot

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Round lot

A trading order typically of 100 shares of a stock or some multiple of 100. Related: odd lot.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Round Lot

1. 100 shares of a stock or other security.

2. $1,000 or $5,000 in bonds.

Most trading takes place in multiples of round lots.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

round lot

The standard unit of trading in a particular type of security. For stocks, a round lot is 100 shares or a multiple thereof, although a few inactive issues trade in units of 10 shares. For corporate, municipal, and government bonds, a round lot is usually considered to be $100,000 of principal amount of securities per trade. Customers involved in securities transactions in lots other than round lots are often penalized somewhat because the trades require more broker and dealer effort. Also called even lot, lot, normal trading unit. Compare odd lot.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Round lot.

A round lot is the normal trading unit for stocks and bonds on an organized securities exchange or market, also called a trading platform.

For example, shares of stock traded in multiples of 100 are typically considered round lots, as are bonds with par values of $1,000 and $5,000.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
An online survey by revealed drivers who ring round lots of insurance companies can save an average of pounds 150 a year.
"We're all used to being round lots of children and having a laugh and a joke."
"Last summer I wrote loads of letters to people I'd either met on the racecourse, or to owners with horses spread round lots around of trainers, asking if they'd like one more.
During any one day, a corporation generally may not buy more stock than the larger of one round lot (generally 100 shares) or the number of round lots nearest to equaling 25% of the stock's average daily trading volume for the four calendar weeks preceding the start of the buyback program.
Bailey, for example, likes to find stocks selling for between $30 and $70, because this makes buying round lots of 100 shares affordable.
* On any single trading day, the company can't purchase more than the greater of either one round lot (100 shares) or the number of round lots that is closest to 25% of the company's stock's average daily trading volume in the four previous calendar weeks.
They're looking for training ammo that's cost effective in 500 to 1,500 round lots, depending on which class they've signed up for.
Surveys of corporate managers (Baker and Gallagher |2~), statements of accounting standards boards (Chottinger and Young |8~), and general market folklore (Teweles and Bradley |46~) all suggest that the increase in round lots enabled by stock splits is used to increase a firm's shareholder base and thereby improve market liquidity.
Their price per share - frequently $15 or lower - enables both small and large investors to buy round lots of several companies, thus inexpensively diversifying their investment.
The savings in transaction costs is considerable when buying bonds within pools due to the sheer size that bonds trade in as round lots. Very few investors can achieve transaction savings on these scales and still achieve significant diversification."