Odd-Lot Dealers

The standard trading unit for listed stocks is designed as a round lot which is usually a 100 shares. The off-lot dealers are members specilalising in the execution of orders for blocks of shares less than 100. They buy odd-lot which other members wish to sell to their customers and sell off-lots which others wish to buy. The price of the odd-lot is determined by the round lot transactions. The odd-lot dealer earns his profit on the difference between the price at which he busy and sells the securities. He does not depend on commission.