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Simple English definitions for legal terms
board lot
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A quick definition of board lot:
A board lot is a specific number of shares or a specific quantity of a commodity that is designated for trading. It is the established unit of trading for stocks and bonds. A round lot of stock is usually 100 shares, and a round lot of bonds is usually $1,000 or $5,000 par value. An odd lot is a number of shares of stock or the value of a bond that is less than a round lot.
A more thorough explanation:
A board lot is a specific number of shares or a specific quantity of a commodity designated for trading. It is also known as an even lot or a round lot.
- A round lot of stock is usually 100 shares.
- A round lot of bonds is usually $1,000 or $5,000 par value.
These examples illustrate that a board lot is a specific unit of trading for stocks and bonds. It is the established minimum amount that can be bought or sold in a single transaction.