SEC Favors Pilot to Vary Tick Sizes for Small Stocks

Discussion in 'Wall St. News' started by OnClose, Mar 22, 2013.

  1. OnClose


  2. J.P.


    In sum, here are the three justifications proffered for increasing the tick size:

    1. "In theory, wider tick sizes would increase the spread between bid and offer prices, boosting profits for market makers. Higher profits may revive interest in funding analyst research on small stocks, generating greater interest in the stocks"

    2. "Proponents say widening minimum tick sizes would help boost the number of small companies going public"

    3. "It would be great for the investor experience because they would see more liquidity on their screens and there would be a higher willingness to trade"

    Clearly, all three reasons are completely bogus; thus supporting smaller, rather than larger, tick sizes.