Stocks are always quoted in A decimals B quarters of a dolla

Stocks are always quoted in

(A.) decimals

(B.) quarters of a dollar

(C.) quarter lots

(D.) percents

Solution

All stocks in the U.S. have been quoted in decimals, rather than fractions, since April 9, 2001. As a result, bid-ask spreads have contracted dramatically, with spreads for the most widely traded stocks now as small as a penny, compared with 1/16th of a dollar (or $0.0625) earlier. Decimal pricing has resulted in substantial savings on transaction costs to U.S. investors because of tighter bid-ask spreads.

Hence, answer is A) decimals