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Share Market Terms , Definition and Meaning - Alphabetical LISTING - A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, Y, Z
Odd Lot In the stock market shares are generally bought and sold in MARKET LOTS, which are easy to trade. Any number of shares less than the market lot makes an odd lot. Odd lots typically arise from BONUS or RIGHTS issues. Apart from the difficulty in buying or selling odd lots, there is another disadvantage: you may have to sell an odd lot at a considerably lower price than that quoted for a market lot. There is, however, some good news. The government has now advised all listed companies to form a trust to deal in odd lot shares. The trustee will sell shares only of that company, through brokers, and not indulge in independent trading. The company will send the rights and bonus shares of the scrip to the trustee, and when the trustee has consolidated them into marketable lots he will go to a recognized broker dealing in the shares of the company. The holder of the scrip will pay a small service charge and the usual brokerage.
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Share Market Terms , Definition and Meaning - Alphabetical LISTING - A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, Y, Z
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