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Study Finds Lower Spreads On Nasdaq Stock Market

Traders Magazine, April 2001

Gregory Bresiger

Decimalization appears to have reduced quoted spreads on the Nasdaq by 3.7 cents and is providing more benefits than those stocks on the Big Board. Spreads are also narrower using decimals in Nasdaq stocks compared to a matched sample of NYSE control stocks that are already trading in decimals.

Those are the results of a study conducted by two academics and an official of Bridge Information Systems. The study took place between March 12 and March 30 of this year.

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