Market Lot

Market Lot A fixed minimum number, in which or in multiples of which, shares are bought and sold on the stock exchange. For shares whose face value is Rs 10, the marketable or trading lost may be 50 or 100. Fir Rs 100 shares the market lot is usually 5 or 10. Companies may, however, decide on other lots, such as 1 share for RS 500, although it is now rare. Any number of shares less than the marketable lot makes an odd lot, difficult to buy and disadvantageous to sell. When companies issue bonus or rights shares in less than 1:1 ratio, odd lots are often the result.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress