|  JUL 1990

Member/Odd Lot Trading by Arthur A. Merrill, CMT

Member/Odd Lot Trading by Arthur A. Merrill, CMT Stock exchange members, the group that makes up the member trading statistics, should be more knowledgeable than the rest of us, the great ""public."" The members should be smart money — at least, they should be smarter most of the time. In recent years, the odd lot market has been used by large operators to avoid tick change rules. Usually, though, odd lot trades represent the operations of a group not as knowledgeable as the exchange members. A comparison of the operations of smart money with those of the not-so-smart could be useful. If so, an index comparing the buying and selling of exchange members with the buying and selling of the odd lots might be helpful. Recently, I put such an index to the test and it came through with flying colors.

by Arthur A. Merrill, C.M.T.