Financial reports and analyses from major brokerage firms and financial news outlets

SEC Unanimously Votes Wednesday to Allow Half-Penny Stock Pricing to Reduce Costs

Sep 18, 2024, 02:25 PM

The U.S. Securities and Exchange Commission (SEC) has unanimously voted on Wednesday to 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 broader effort to promote more competitive pricing and reduce transaction costs for investors. The new rules, which also aim to lower fees that exchanges can charge brokers, could constitute the biggest overhaul of U.S. equity markets in nearly 20 years. SEC Chair Gary Gensler stated that the stock-pricing revamp addresses outdated rules and is intended to make trading more efficient. The changes will apply to thousands of stocks and ETFs traded on exchanges.