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‘Tick size’ widening for some small-company stocks

Beginning today, select companies will trade in five-cent increments instead of one-cent in the US

Shares in some small companies will start trading in five rather than one-cent increments on September 3, in the first adjustment to “tick” sizes since the decimalisation of the US stock market 15 years ago.

The move to nickel-increment price quotes is part of an experiment into whether widening tick sizes can boost trading in small-capitalisation stocks, even as doing so could mean higher trading costs for investors.

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