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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (7279)3/11/2000 5:34:00 PM
From: Dan Duchardt  Read Replies (1) | Respond to of 18137
 
LPS5,

In currently inactive stocks, I believe that the arrival of a nickel increment ($.05) will turn them INTO active - at least more active - issues.

I don't follow your thinking on this point. If inactive issues now are typically quoted with larger spreads and increments greater than what is allowed in the current scheme, why will changing the representation to 20 increments per dollar from 16 increments per dollar cause people to use more of them?

Dan



To: LPS5 who wrote (7279)3/11/2000 5:44:00 PM
From: Tai Jin  Read Replies (1) | Respond to of 18137
 
I suppose I could see more scalping, as Jon mentioned. But note that commissions still get in the way of making a profit on less than a 1/16 or 5 cents per 1000 shares. As for the illiquid stocks, I doubt that decimalization will make them more liquid. The current fractional system isn't what's inhibiting the liquidity, and decimalization won't change that.

...tai


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