Several decades ago, “odd lot” trades—in which fewer than 100 shares change hands—were an insignificant part of U.S. stock trading. That is because the regulations that govern U.S. stock trading were written in an era dominated by “round lot” trades, in multiples of 100 shares. Odd-lot trades were about 30% of all trades at the beginning of 2019 but jumped in the second quarter for reasons that are unclear. Market veterans cite lofty share prices as a key factor behind the steady rise of odd-lot trading in recent years. Many other U.S. companies boast share prices in the hundreds after a decadelong bull market.

Source: Wall Street Journal October 22, 2019 12:03 UTC