Does it have anything to do with options, since 1 option = 100?
Thanks
It is merely convention; a starting point that everyone agrees is "normal."
Any confusion can usually be cleared up by defining your terms. What is it you don't understand about the definition?
Definition of 'Round Lot'
http://www.investopedia.com/terms/r/roun...
A "lot" that cannot be evenly divided by 100 is called an "odd lot." It's just convention. It also facilitates trade, or makes trading easier, which makes trading cost less. Unless otherwise specified, the stock quotes you see on the TV ticker tape or in the newspaper, etc., are quoted in round lots. An agreed convention makes things easier, simpler. Sometimes odd lots are combined, or "bunched", into round lots to facilitate trading.
Because of commissions, the cost per share to purchase 60 shares of a stock might be higher than the cost to purchase 100 shares, after commission fees are added in to the transaction. The amount of increased expense is dependent upon the cost per transaction of the service that the investor utilizes.
http://www.investopedia.com/ask/answers/...
Read a good beginner book like Investing For Dummies and The Millionaire Next Door to get a feel for the markets, what's available, and how things work; available at your local library.
Shares are ALL normally traded in "round lots" of 100 (or multiples thereof), that's the way it has always been...
Why would you buy 4963 shares instead of 5,000? People who are serious about investing aren't pinching pennies, they are keeping the process clean and simple. That's the primary reason.
We oldsters do it that way. There is no earthly reason for you to do it that way. Soon we will all be retired or dead an dstock trading will be done in quantities like 18653 shares.
When I look at Level 2, I see that most of the trades are in blocks of 100, 200, or 300 - why is that?
Does it have anything to do with options, since 1 option = 100?
Thanks
