The securities industry in the United States traditionally used fractions to quote stock and option prices while other markets around the world quoted in decimals. The term, decimalization, refers to the process of converting from a system that uses fractions to the decimal system.
Decimalization allows securities to trade at increments as small as a penny.
This should reduce bid-ask spreads, which will, in turn, increase each investor's potential to profit from their investments. Decimalization was phased in slowly starting on August 28, 2000. All stocks were decimalized by the last conversion, which took place April 9, 2001. Web site contains additional information about Decimalization. View Corporate Entities and Important Disclosures , Web Site Rules and Regulations , Trademarks and Privacy Statement .