In 2001, the NYSE switched from a fractional pricing system (stock priced in increments of 1/8 of

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In 2001, the NYSE switched from a fractional pricing system (stock priced in increments of 1/8 of a dollar) to a decimal pricing system (stock priced in increments as small as 1 cent). Explain how this might encourage front-running by traders?

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An Introduction to Investment Banks, Hedge Funds, and Private Equity

ISBN: 978-9380931074

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Authors: David P. Stowell

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Question Posted: Aug 30, 2013 02:23 AM

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In 2001, the NYSE switched from a fractional pricing system (stock priced in increments of 1/8 of

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Investors may benefit from lower transaction costs ...View the full answer

An Introduction to Investment Banks, Hedge Funds, and Private Equity

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