Few Questions

[Anonymous Investor]

Hello,

I'm new to stock investing and am just trying to understand a few concepts. Sorry if these same basic.

1.First, what is Odd Lot Trading and what is the purpose of it? The one I'm most interested in is NYSE Odd Lot Trading, found on nysedata.com, that looks something like this.

NYSE Odd Lot Activity

Purchases (shares) 10,195,676
Short sales (shares) 3,596,819
Other sales (shares) 8,177,036
Total sales (shares) 11,773,855

2. Why do people care about Bond Volume on NYSE and Amex? Is this data of any use? Are there any signs?

3. Is it good to track Money Rates? I've been following the weekly updated version on WSJ.COM..found here...http://online.wsj.com/mdc/public/page/2_3020-moneyrate.html?mod=topnav_2_3000

These numbers seem interesting to look at, but I just don't understand their meaning very well.

Any help would be greatly appreciated. Thanks!!!

[aiki14]

I will try to answer your questions in order

1) Odd lot trading is trading in blocks of shares less than 100 shares (the standard lot).
Analysis using it is somewhat dubious IMO, and it dates back to at least the 70's. It implies that small share volume orders are likely to be entered by small, less sophisticated investors, and as such are used by quant programmers usually to indicate the end of a trend. Meaning that when the little guy shows up, the party is over.

2)They only started bond trading last year and I haven't done any. Here's a helpful website
http://www.nyse.com/productservices/securities/1095449059236.html
The data is of use in the same way stock volume is, to indicate the strength of trends.
I don't understand what you mean by signs in this context

3)Tracking money rates is of many uses. As a benchmark to assess the value of an investment or competitveness of interest rates. Interest rates for various products are tied into the various rates (Adjustable Rate Mortgages for instance are tied to US Prime or LIBOR rates). Big players like international banks can arbitrage the difference between rates of different entities (Carry Trades).

Hope that helps

[Anonymous Investor]

Thank you so much! It really helps! :)