effective sale

Effective sale

A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference created between the last round-lot price and the odd-lot price is referred to as the odd-lot differential.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Effective Sale

The sale of a round lot (100 shares) of a security that determines the price of an odd lot trade. Thus, the effective sale is the first trade that takes place after a specialist receives an odd lot order.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

effective sale

The trade that determines the price for an odd-lot order. For odd-lot market orders, the effective sale is the first trade following the specialist's receipt of the odd-lot order. For an odd-lot limit order, the effective sale is the trade that permits an odd-lot differential. See also electing sale.

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.