Board Lot


DEFINITION of 'Board Lot'

A standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares. The purpose of a board lot is to avoid "odd lots" and to facilitate easier trading. It's more difficult for a broker to find a buyer for, say, 17 shares, than if everybody agrees to trade in 100 share lots.


For example, a stock exchange might define one board lot as equaling 1,000 shares for stock priced under $1, and 100 shares for shares of more than $1. The thinking is that standardization increases liquidity thus lowering spreads and making the market more efficient for everybody.

  1. Odd Lot

    An order amount for a security that is less than the normal unit ...
  2. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
  3. Round Lot

    A group of 100 shares of a stock, or any group of shares that ...
  4. Lot

    In general, any group of goods or services making up a transaction. ...
  5. Mixed Lot

    A type of order for a number of securities that is not a round ...
  6. Market

    A medium allowing buyers and sellers of a specific good or service ...
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