Series 7: 17.4.1. Format Of Quotations

Taken from our Series 7 Online Guide

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17.4.1. Format of Quotations

Bids and offers on equity securities in all the secondary markets are priced at the penny level, as long as the stock price is above $1. Stocks that trade below $1 can be traded at increments of $0.0001 or more. In other words, sub-penny pricing is only allowed for stocks that trade at less than $1 per share.

Recall that bids and offers on corporate bonds are typically quoted in eighths of bond points. Municipal bonds are also quoted in eighths of a bond point. Treasury bonds and notes are quoted in 32nds, while Treasury bills are quoted on a yield which is a discount to par.

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SUMMARY TABLE

Security

Quoted In

Example Bid-Ask

Stocks

Dollars and cents

35.23 – 35.30

Corporate bonds

Bond points (in eighths) or yield (in basis points)

Yield may be the number of basis points above a Treasury bond

89 1/4 – 89 3/4

$892.50 – $897.50)

+275 would mean 2.75% higher than the yield of a comparable Treasury bond

Treasury bonds and notes

Bond points (in 32nds)

89.16 – 89.24

($895 – $897.50)

Treasury bills