United States Government Publishing Office
publisher
pbl
distributor
dst
United States
Government Accountability Office
author
aut
Government Organization
text
government publication
eng
GAOREPORTS
Legislative Agency Publications
gao
legislative
2010-08-12
U.S. Government Printing Office
2005-05-31
monographic
deposited
born digital
124 p.
GA 1.13:GAO-05-535
https://www.govinfo.gov/app/details/GAOREPORTS-GAO-05-535
P0b002ee18039f054
f:d05535
DGPO
2010-08-12
2011-03-28
GAOREPORTS-GAO-05-535
machine generated
eng
fdlp
REPORT
GAOREPORTS-GAO-05-535
GAO-05-535
Brokerage industry
Comparative analysis
Cost analysis
Cost effectiveness analysis
Financial analysis
Investment companies
Prices and pricing
Stock exchanges
Stocks (securities)
Systems analysis
Transparency
Other Written Product
A25477
Securities Markets: Decimal Pricing has Contributed to Lower Trading Costs and a More Challenging Trading Environment
In early 2001, U.S. stock and option markets began quoting prices
in decimal increments rather than fractions of a dollar. At the
same time, the minimum price increment, or tick size, was reduced
to a penny on the stock markets and to 10 cents and 5 cents on
the option markets. 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. In addition, there is
concern that the financial livelihood of market intermediaries,
such as the broker-dealers that trade on floor-based and
electronic markets, has been negatively affected by the lower
ticks, potentially altering the roles these firms play in the
U.S. capital market. GAO assessed the effect of decimal pricing
on retail and institutional investors and on market
intermediaries.
https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-05-535/html/GAOREPORTS-GAO-05-535.htm
https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-05-535/pdf/GAOREPORTS-GAO-05-535.pdf
GAO-05-535
https://www.govinfo.gov/app/details/GAOREPORTS-GAO-05-535
Other Written Product
GAO-05-535; Securities Markets: Decimal Pricing has Contributed to Lower Trading Costs and a More Challenging Trading Environment;
Brokerage industry
Comparative analysis
Cost analysis
Cost effectiveness analysis
Financial analysis
Investment companies
Prices and pricing
Stock exchanges
Stocks (securities)
Systems analysis
Transparency