Odd lots are considered to be anything less than the standard 100 shares for stocks. Trading commissions for odd lots are generally higher on a percentage basis than those for standard lots since most brokerage firms have a fixed minimum commission level for undertaking such transactions.

The purpose of an Odd-lot Offer generally is to reduce the issuer's disproportionately high cost of servicing small shareholder accounts, and to enable such shareholders to dispose of their securities without incurring brokerage fees. ---------FOOTNOTES---------- -[1]- 15 U.S.C. 78a et seq. -[2]- 17 CFR 240.13e-4.

Odd-lot dealer. A broker who combines odd lots of securities from multiple buy or sell orders into round lots and executes transactions in those round lots.

Financial Terms By: o. Odd-Lot Buy Back. An offer made by the corporation or its agent to purchase shares from odd-lot shareholders.