THE ODD-LOT BUSINESS 
241 
among the different brokerage houses and according to the 
number of shares bought or sold; in many cases, the minimum 
commission charge is $2, although some firms would make a 
higher charge. The broker cannot make any other profit from 
an odd-lot transaction, however, since he is not a dealer, but 
merely his customer’s agent. The odd-lot dealer, on the other 
hand, being a dealer and not a broker, cannot charge any com- 
mission for his services, but must rely for his profits on the 
difference between the prices of his sales and his purchases. 
Determining the Price.—With this background of the 
mechanical side of the odd-lot business, we are now in a posi- 
tion to consider how the prices at which such typical purchases 
and sales as those discussed above are determined. The price 
at which odd-lot houses can profitably and regularly afford to 
deal in odd-lots of stock depends fundamentally upon the cur- 
rent market prices for the sales of the same stocks in 100-share 
lots, as well as upon such limitations as may be placed upon the 
buying or selling orders of the customers. The activity of the 
particular stock is also an essential factor in this question of 
price, as we shall see. 
In the case of the most active stocks it is customary for 
odd-lot dealers to sell odd-lots at 4 above, or buy them at 14 
below, the next sale of 100 shares, Thus, an odd-lot dealer in 
receipt of an order to make a purchase or sale of 20 shares of 
Bethlehem Steel common will wait about the post where this 
stock is traded in until the next 100-share transaction occurs. 
If 100 shares of Bethlehem Steel should be sold—let us say— 
at 95, the odd-lot dealer would under the circumstances sell 20 
shares for 9514, or buy them for 94.74. 
Transactions Made at Bid and Offer Prices.—Since on 
this basis odd-lot trading involves waiting for a sale of 100 
shares, another method is sometimes resorted to, which avoids 
the delay. In most active stocks the odd-lot dealer will buy or 
sell at once, if he is allowed to buy the odd number of shares