Legal Definitions - round lot

A round lot is a specific number of shares or a specific quantity of a commodity designated for trading. It is the established unit of trading for stocks and bonds.

• A round lot of stock is usually 100 shares.
• A round lot of bonds is usually $1,000 or $5,000 par value.

For example, if an investor wants to buy or sell a stock, they must do so in multiples of 100 shares, which is a round lot. If they want to buy or sell a bond, they must do so in multiples of $1,000 or $5,000, which is also a round lot.