An investor who deals in securities only occasionally, especially when he/she deals only in small quantities. Odd-lotters are also called (more formally) small investors. Odd-lot theory holds that odd-lotters are both poorly informed and risk averse; this theory encourages larger investors to do the opposite of whatever odd-lotters tend to be doing at a given time. This theory has little evidence to support it, and few have held it since the 1990s.
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An investor who buys and sells securities in less than the standard unit of trading. Odd-lotters are generally small investors lacking the financial resources to engage in larger trades.
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.