easy · Market Microstructure
A stock is priced at 105.00. A trader wants to place a sell limit order at 105.005.
According to Regulation NMS Rule 612, is this permitted?
- No, because the price is ≥ 1.00, requiring a minimum increment of 0.01.
- Yes, because sub-penny increments are allowed for all sell orders.
- Yes, as long as the order size is for at least 1,000 shares.
- No, because the stock's price is too high to allow for any increment smaller than $0.05.
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