Board lot

Board lot
See also
Short call option Span margin Gamma hedging Decline ratio Hedge fund Long put Auction market Unit trust Going price

Board lot is the number of shares that are sold in package. Board lots make trade easier for brokers. For low value shares board lots are bigger, e.g. for shares less than €1 board lot can be 1000 shares. For high value shares board lots are smaller, e.g. for shares more than €10 it can be 10 shares.

The board lot helps decrease transaction costs. It also removes very small investors from the market. If the board lot is too big, investor can ask broker for help. Broker can find several investors that will buy one board lot.

Example board lot from Philippines Stock Exchange:

Price in pesos	Board lot
0.0001 to 0.0099	1,000,000
0.010 to 0.049	100,000
0.050 to 0.249	10,000
0.250 to 0.495	10,000
0.50 to 4.99	1,000
5.00 to 9.99	100
10.00 to 19.98	100
20.00 to 49.95	100
50.00 to 99.95	10
100.00 to 199.90	10
200.00 to 499.80	10
500.00 to 999.50	10
1,000 to 1,999	5
2,000 to 4,998	5
5,000 to UP	5

References

• Travlos, N. G., Trigeorgis, L., & Vafeas, N. (2015). Shareholder wealth effects of dividend policy changes in an emerging stock market: The case of Cyprus.