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.

  • How may shares do you commonly trade? Does that hundredth of a cent impact your decision? – JTP - Apologise to Monica 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
  • 2
    @DilipSarwate - All US-based stock exchanges were decimalized on or before April 9, 2001, by order of the SEC. – user296 Sep 24 '12 at 22:57

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.

  • 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

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.)

  • 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
  • @wonton I could swear I saw the answer to the question one time, and it was something to the effect that market makers can place bids at tiny amounts above what retail investors can, which effectively lets them step in front of you like you are seeing. – Michael Oct 10 '19 at 22:33

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