• Share
  • Print
    • Text Size
    • Smaller
    • Larger
EP cover
On This Page
Vol. 27, No. 4
Last Updated: 11/03/2003

Decimalization and market liquidity

Craig H. Furfine

This study examines the stocks of 1,339 companies that began decimal trading on the NYSE on January 29, 2001. Using the price impact of a trade as a measure of liquidity, the author finds that decimalization typically led to an improvement in liquidity.