generally accepted unit of trading on a securities exchange. On the New York Stock Exchange, for example, a round lot is 100 shares for stock and $1,000 or $5,000 par value for bonds. In inactive stocks, the round lot is 10 shares. Increasingly, there seems to be recognition of a 500-share round lot for trading by institutions. Large denomination Certificates of Deposit trade on the Over The Counter market in units of $1 million. Investors who trade in round lots do not have to pay the differential charged on odd lot trades.

generally accepted unit of trading on a securities exchange. On the New York Stock Exchange, for example, a round lot is 100 shares for stock and $1,000 or $5,000 par value for bonds. Contrast odd lot .