Dictionary of Finance and Investment Terms: odd-lot dealer
odd-lot dealer
originally a dealer who bought round lots of stock and resold it in odd lots to retail brokers who, in turn, accommodated their smaller customers at the regular commission rate plus an extra charge, called the odd-lot differential. The assembling of round lots from odd lots is now a service provided free by New York Stock Exchange specialists to member brokers, and odd-lot transactions can be executed through most brokers serving the retail public. Brokers handling dd lots do, however, receive extra compensation; it varies with the broker, but 0.125 per share in addition to a regular commission is typical.
