Round lot

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A Round lot also called board lot. An order of trading 100 (or hundreds) shares of a security. It is opposed to odd-lot order where the order is less than 100 shares of security. Historically, some brokers charge higher commissions for odd-lot orders. But it is not clear if brokers still charge more for odd-lot orders.

For US stocks, a board lot (or round lot) is usually 100 shares. For Canadian stocks the board lot size depends on the previous close price. If the previous close is under $0.10 a board lot is 1000 shares, from $0.10 to $1.00 a board lot is 500 shares and shares higher than $1.00 are in lots of 100. Under typical circumstances a board lot is 100 shares.

There is a recent trend in US round lots of offering preferred stocks at a lower price ($50, as opposed to $100 par). This opens the opportunity of purchasing round lots to investors who could not afford them at $100 per share.

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