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Trading Terms

Board Lot

It helps to ensure efficient trading and price stability in the market.

A crucial concept in finance is the board lot. Essentially, this refers to a standardized number of shares that are used as a trading unit on the stock exchange. By setting a specific quantity as the minimum for trading, the board lot helps to ensure efficient and orderly transactions in the market. This also helps to promote price stability, as it prevents large fluctuations in stock prices due to smaller trades. Understanding the concept of board lots is essential for any investor looking to navigate the stock market with confidence and savvy.

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