Decimal Pricing

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Decimal Pricing

The listing of a security's price in decimals instead of fractions. For example, decimal pricing means that a security would be listed as, say, $25.25, instead of $25 1/4. Decimal pricing makes prices and the market more understandable for investors and laypeople.

Decimal pricing. US stocks, derivatives linked to stocks, and some bonds trade in decimals, or dollars and cents. That means that the spread between the bid and ask prices can be as small as one cent.

The switch to decimal stock trading, which was completed in 2001, was the final stage of a conversion from trading in eighths, or increments of 12.5 cents.

Trading in eighths originated in the 16th century, when North American settlers cut European coins into eight pieces to use as currency. In an intermediary phase during the 1990s, trading was handled in sixteenths, or increments of 6.25 cents.

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Front Running			Although many believe that decimal pricing has benefited small individual (retail) investors, concerns have been raised that the smaller tick sizes have made trading more challenging and costly for large institutional investors, including mutual funds and pension plans. Securities Markets: Decimal Pricing has Contributed to Lower Trading ... by General Accounting Office Reports & Testimony Although decimal pricing led to lower order preferencing on NASDAQ, the proportion of preferenced trades after decimalization is much higher than what some prior studies had predicted. Market Microstructure. (Conferences) by NBER Reporter Last year's implementation of decimal pricing was a factor in creating this new opportunity. ECN: A new force in the stock markets? (Global Securities) by Millman, Gregory J. / Financial Executive			Debt service parity approach debt service ratio Debt swap debt to equity ratio Debt Warrant Debt-Based Asset Debt-for-Equity Swap Debt-Service Coverage Ratio Debt-to-Capital Ratio Debt-to-Equity Ratio Debt-to-GDP Ratio Debt-to-Income Ratio Debt/EBITDA ratio debt/equity ratio Debt/Equity Swap Debtholder debtor debtor in possession Debtor in Possession Financing Debtor-in-Possession Financing Decaissement Deceased Alert decedent December Effect Decile Rank Decimal Pricing Decimal Trading Decimalization Decision Break-Point Analysis Decision Tree Deck Declarabele uren Declaracao de imposto de renda Declaracion de impuestos consolidada Declaracion impositiva Declaracion impositiva con informacion falsa Declaracion jurada declaration Declaration Date declaration of condominium ownership declaration of homestead declaration of restrictions declaration of trust Declaratory Judgment Declare Declared Dividend Declassement Decline Decliner Declining Balance Method Declining Balance Method of Depreciation			Decimal Locator Unit Price decimal medicines decimal notation decimal notation Decimal number Decimal number decimal number system decimal number system Decimal numberal system Decimal numberal system Decimal numbers Decimal numbers Decimal numeral system Decimal numeral system decimal numeration system Decimal Order of Magnitude Decimal period Decimal period decimal place decimal place decimal place decimal places decimal places decimal point decimal point decimal points decimal points decimal potency decimal potency decimal potency Decimal Pricing decimal processor Decimal Reference Publication Format Decimal representation Decimal separator Decimal separator Decimal Shift & Add decimal system decimal system decimal system decimal system of classification Decimal to ASCII DECIMAL TO BINARY / HEXADECIMAL TO BINARY DECIMAL TO BINARY / HEXADECIMAL TO BINARY DECIMAL TO BINARY / HEXADECIMAL TO BINARY DECIMAL TO BINARY / HEXADECIMAL TO BINARY Decimal trading Decimal value Decimal value Decimal Voltage Output Decimal week decimal-binary switch decimal-coded digit decimal-to-binary conversion decimalisation decimalisation decimalise Decimalised decimalises decimalising decimalism

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