SEC Poised to Allow Half-Penny Stock Pricing in Major Market Overhaul on Wednesday

Sep 18, 2024, 02:03 PM

The U.S. Securities and Exchange Commission (SEC) is poised to vote on Wednesday on new rules that will allow stock markets to price shares in increments of half a penny, rather than the current minimum size of 1 cent. This move is part of a larger package of proposed reforms aimed at promoting more competitive pricing and reducing investors' transaction costs. The overhaul, which could be the biggest change in U.S. equity markets in nearly 20 years, also includes measures to lower the fees that exchanges can charge brokers. SEC Chair Gary Gensler has stated that the stock-pricing revamp addresses outdated rules. The new rules will affect thousands of stocks and ETFs by reducing tick sizes.