search query: @indexterm stock exchanges / total: 536
reference: 192 / 536
| Author: | Bacidore, J. |
| Title: | The impact of decimalization on market quality: an empirical investigation on the Toronto stock exchange |
| Journal: | Journal of Financial Intermediation
1997 : APR, VOL. 6:2, p. 92-120 |
| Index terms: | MARKETS QUALITY STOCK EXCHANGES |
| Language: | eng |
| Abstract: | The author addresses the "decimalization" debate, i.e., whether trading on cent ticks rather than fractions of a dollar reduces trading costs without diminishing liquidity. The author uses Toronto Stock exchange data following their switch to decimal trading on April 15, 1996. For stocks whose minimum tick was reduced from one-eighth of a dollar to five cents, decimalization reduced spreads, while liquidity was not adversely affected. Investors' trading costs and liquidity providers' profits declined on average, but trading volume did not increase. |
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