The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

During The Decimalization Phase In Period, Will Trading Be Done In Decimals And Fractions ?

No mixed pricing will be allowed for a single stock or option. During the phase-in period, a select group of stocks and options will be priced in decimals, while all others will be priced in fractions. Once the phase-in is fully implemented, pricing, quoting and trading will only be done in decimals. An exception to this rule is the exercise price for options. They will remain in fractions during the phase-in period. Option premiums will be expressed decimally in dollars and cents.

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