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I know that stocks below $1.00 can be traded to 4 decimal places, but is that possible for stocks above $1.00? On a list order transactions, one can find prices like $2.2801 despite most ecn brokers forbidding the practice.

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How may shares do you commonly trade? Does that hundredth of a cent impact your decision? – JoeTaxpayer Aug 24 '12 at 0:55
What exchange/ECN? That highly depends on the market place. – hroptatyr Aug 24 '12 at 14:10
Not sure. I guess my question is more like "is there an exchange that allows the placing of orders at a fraction of a cent?" – wonton Aug 25 '12 at 1:00
Aren't share prices in the US quoted in eighths of a dollar as in "Stock A was down one and three-eighths yesterday and is up one and five-eighths this morning"? – Dilip Sarwate Sep 23 '12 at 22:06
@DilipSarwate - All US-based stock exchanges were decimalized on or before April 9, 2001, by order of the SEC. – fennec Sep 24 '12 at 22:57

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It's possible that if someone bought, say, 300 shares, they were able to buy 200 of them at one price, but then had to pay a slightly higher price (say, $0.01 higher) for the next 100. Then the price reported for those shares would be the average amount, and would be fractional.

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Yes @wonton , to add to this, the averaging is what is reported on the ticker tape, as there are many other situations where an average could happen. I recently did call a market maker about this and was told how it happens – CQM Sep 23 '12 at 17:15
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I'm not sure fennec's answer is the right one.

This happens too frequently to me in thinly traded stocks. I will have a bid of say 2400 shares @ $1.06 outstanding as the listed high bid price and quantity. Suddenly a trade for 200 shares will execute at 1.0601 leaving my offer untouched.

Once in a blue moon is one thing; 25 to 30 percent of the trades and always at $0.0001 above or below my price is another. I suspect someone is "stepping in front" of me. A broker practice forbidden but which seems to happen all too frequently.

For example watch SPPR. Yesterday (10/4/12) at the close, Scottrader listed the high for SPPR as 1.0701 and the low as 1.0699. (Note: Many sites round the data to 0.01; don't be misled.)

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This is exactly what I'm asking about. – wonton Oct 6 '12 at 21:24
I haven't been able to find where you report such activity. The exchange or the SEC. No links are obvious at either place. @fennec – Jerry Oct 9 '12 at 15:45

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