Hello, i have recently opt for scrip dividend to be reinvested. However, i read that i will have a hard time with odd lots when i want to sell all my shares.? - Seedly
 

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Asked by Anonymous

Asked on 20 Nov 2018

Hello, i have recently opt for scrip dividend to be reinvested. However, i read that i will have a hard time with odd lots when i want to sell all my shares.?

Anyone can advise if this is a disadvantage and how do you deal with odd lots? Thank you.

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Yixiong Chang
Yixiong Chang
Level 7. Grand Master
Updated on 07 Jun 2019

The disadvantage is that u usually have to play a slightly worse off price compared to the ready market. But it really isnt a big deal. You could be just losing a few ticks on the odd lot portion. If u are going for scrip dividend, u should have the intention to hold/accumulate for the longer term. You wouldnt need to sell anyway.

Board lot (usually 100, can be 10 or 50 for some) will be traded in the 'ready market'). Anything less, the odd lot trades in the 'unit share market'. It is less liquid so typically the spread will be wider.

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Question Poster

29 Nov 2018

Wow this is very useful! Thank you so much! :D