SEC Unanimously Votes on September 18 to Allow Half-Penny Stock Pricing

Sep 18, 2024, 02:42 PM

On September 18, the U.S. Securities and Exchange Commission (SEC) unanimously voted to allow stock exchanges to price shares in increments of half a penny, rather than the current minimum size of 1 cent. This decision is part of a broader package of proposed reforms aimed at boosting competition, lowering trading costs, and improving market efficiency. The new rules will apply to thousands of stocks and ETFs traded on exchanges. SEC Chair Gary Gensler stated that the stock-pricing revamp addresses outdated rules and is intended to promote more competitive pricing and reduce investor costs. The SEC also unveiled changes in tick sizes.