Types of Stock Transactions
When buying and selling stocks there is an advantage many “new” Investors don’t know. Here at Wall Street College we aim to teach you what you need to know in order to make the best investments.
It is important to know the different stock market order types. Yes, stocks can be bought or sold at the price you specify, we will talk more about Investment strategies using different stock orders in future chapters, but for now it is important you know what the can do.
Types of orders
3.Stop-loss Order (a.k.a. Stop Order)
Round Lot versus Odd Lot
This is the term used for buying or selling a “bulk” of stock in other words.
100 shares or multiples of 100 shares
Less than 100 shares
Extra cost of trading an odd lot
Traditionally, the odd-lot differential was 12½¢ – 25¢
It is now typically 5¢ – 10¢ or less