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MIAMI A
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LSDefine
Simple English definitions for legal terms
round lot
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A quick definition of round lot:
A round lot is a specific number of shares or a specific quantity of a commodity that is designated for trading. It is the established unit of trading for stocks and bonds. A round lot of stock is usually 100 shares, and a round lot of bonds is usually $1,000 or $5,000 par value. An odd lot is a number of shares of stock or the value of a bond that is less than a round lot.
A more thorough explanation:
A round lot is a specific number of shares or a specific quantity of a commodity designated for trading. It is the established unit of trading for stocks and bonds.
- A round lot of stock is usually 100 shares.
- A round lot of bonds is usually $1,000 or $5,000 par value.
For example, if an investor wants to buy or sell a stock, they must do so in multiples of 100 shares, which is a round lot. If they want to buy or sell a bond, they must do so in multiples of $1,000 or $5,000, which is also a round lot.