Stock Exchanges Go Decimal Today
Effective today, fractions are no longer welcome on both the New York Stock Exchange and the American Stock Exchange. Both exchanges will trade all stocks in decimals, the last step in a government-mandated move that has been planned for three years.
Close to 5,000 stocks were due to be switched when trading begun today. The switchover will not involve all U.S. stocks, at least not yet. The Nasdaq Stock Market, home to more than 4,600 companies, plans to start converting its trading to decimals in March of this year and finish by April 9, the deadline set by the Securities and Exchange Commission.
The SEC had ordered this shift to decimalization on the theory it would make stock prices easier for investors to understand, and potentially open stock bidding and selling to more competition. For most investors, any adjustments to the new system will be minimal.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.