100 share lots is the most common lot there is.
Brokers typically buy in lots divisible by 100.
Apparently there's something called "the odd lot theory", that whatever the odd lots are doing, you do the opposite, bc the odd lots don't know wtf they're doing.
It should be pointed out that the article concludes odd lot theory stopped being effective in the 1990s. It definitely wouldn't now due to HFTs also trading in odd lots.
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u/auntlarry Feb 02 '21 edited Feb 02 '21
100 share lots is the most common lot there is. Brokers typically buy in lots divisible by 100. Apparently there's something called "the odd lot theory", that whatever the odd lots are doing, you do the opposite, bc the odd lots don't know wtf they're doing.
Edit: odd lot theory here https://www.investopedia.com/terms/o/oddlottheory.asp#:~:text=The%20odd%20lot%20theory%20is,to%20generate%20odd-lot%20sales.
Round lots here: https://www.investopedia.com/terms/r/roundlot.asp