* Quoting from "Frank Malcolm to Andrew Freeman on 29 Nov 94  00:52" *

...
 AF>Why was the price for the 86 lower than the price for the 800?
 AF>Were they sold at a different time, or is there a lower demand
 AF>for odd-lots? In any event, we agree on my substantive point:
 AF>* if odd-lots sold with marketable parcel, no minimum brokerage
 AF>fee (e.g. $50) applies for odd-lot

 FM> It's a rule of the stock exchange, and it happens automatically
 FM> whenever you trade a parcel which is not a multiple of a marketable
 FM> parcel. The discount (if you're selling) or premium (buying) is
 FM> specified in the rule, and depends on the share price. The odd lot is
 FM> automatically sold (and must be sold) to the Odd Lot Broker, who of
 FM> course puts them all together into marketable parcels and sells back
 FM> to the market, earning the regulated discount/premium for his trouble
 FM> and risk.
...
Thank you for this information. Key point remains that odd lots
have a marginal impact on the value of large lots of shares sold
- however, they do have some impact, so I will continue to
support Dividend Re-investment Schemes, with a top up to
marketable parcel option after each re-investment round.

Andrew

--- GEcho 1.10+