odd-lot short sales investment & finance definition

The number of shares sold short in less than round lots. Because investors trading odd lots are viewed by many market analysts as unsophisticated, many odd-lot short sales are interpreted as bullish. The number of shares sold short in odd lots is sometimes used to construct an index to gauge small investor speculative activity. The index is calculated by dividing odd-lot short sales by total odd-lot sales. A rising index, indicative of increased speculation by less sophisticated investors, is a bearish sign.