It is less expensive to purchase stock shares in multiples of 100 shares.

Question

Quizplus · Accepted Answer

This is true because of the way stock shares are typically traded. Stock prices are quoted in terms of the price per share, but shares are often bought and sold in large blocks, usually consisting of 100 shares or more. This is known as a round lot. Buying in multiples of 100 shares can often help investors save on trading fees and may also provide easier liquidity when buying or selling shares. Buying in odd lots (less than 100 shares) may result in higher trading fees and may be more difficult to buy or sell due to lower demand.

It Is Less Expensive to Purchase Stock Shares in Multiples