Effective sale

Definition:

A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference created between the last round-lot price and the odd-lot price is referred to as the odd-lot differential.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Going away

The type of bond purchased by dealers for immediate resale to investors, as opposed to purchasing a bond to hold for some amount of time, and then reselling it at a future date.

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