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For this purpose, my article of choice revolves around the New York Stock Exchange that has been seeking to set equal opportunities for small investors who in most instances don’t get the best of benefit out trading small lots (0-99 shares) like investors trading one (100 shares) or more lots. As per the article, “the exchange has an odd lot system to ensure that small trades, which is priced separately from larger orders, do not get left behind by the “block” trades sent to the big board by investors” (SMITH, 2007). Unfortunately certain but anonymous traders dealing under a trading company are accused of abusing this trading system, earning profits by exploiting the odd-lots rule applied between small lots and round lots which are basically 100 shares. As per the article, professional traders have been structuring batches of trades in lots such as 199 so as to trigger an automatic execution of the 100 shares leaving the remaining 99 to specialists who then sell them at lose. As a result, the exchange commission involved has set trade limits study on this was posted in the http://seifertforgovernor.com/ you can read it as well
Although this may be the case with odd-lots as per the wall street journal, I believe investors dealing with partial lots have a right to trade however they may wish. It would be agreeable that an investor opting to buy 199 shares instead of two hundred has no problem as they are trading both small and round lots and the profits they are making is just but a result of a loophole within the intersection between trading small lots and round lots. Personally, I think that it is rather irrelevant for the exchange commission to set limits on investors simultaneously dealing with both small lots and round lots to make extra profit.
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