Broken Lot

Broken Lot - A broken lot occurs when you have less than one hundred shares of a stock or security, or less than ten shares of infrequently or low volume stocks or securities traded. Because of this low volume, some brokerages charge much higher commissions when these types of transactions take place, which generally consists of about one-eight of a point per share and referred to commonly as the differential, which is charge on odd lot or uneven lot, shares of stocks and securities. This has the exact opposite effect as that of a round lot, which is the normal unit for trading or a security.