The US Securities and Exchange Commission (SEC) has approved a measure to allow stocks to be priced in half-penny increments. This decision was made in an effort to improve market liquidity and make it easier for investors to buy and sell stocks.
The new rule will allow stocks to be priced at increments of $0.005, instead of the previous minimum increment of $0.01. This change is expected to benefit investors by reducing trading costs and making it easier to execute trades at more competitive prices.
The SEC’s decision to allow half-penny stock pricing comes after years of debate within the financial industry. Proponents of the measure argue that it will help improve market efficiency and encourage more trading activity, while critics have raised concerns about the potential for increased market volatility.
Overall, the SEC’s approval of half-penny stock pricing is seen as a positive development for investors and the overall health of the stock market. It is expected to go into effect in the near future, pending any further regulatory hurdles.