Decimals Assignment Sends Brokerages Back to the Blackboard

Investors will probably notice some extra pocket change after stock prices convert to decimals from fractions. Brokerages, on the other hand, may find themselves coming up a few cents short.

And as anyone who keep a coin jar knows, pennies can add up.

The Securities and Exchange Commission on Friday told the stock and options markets to begin quoting prices in decimals on July 3. So during the year's last six months, the exchanges will begin pricing stocks in five-cent increments and will experiment with penny increments on a "sample" of securities. Currently, stock prices are quoted in fractions, usually in increments of 1/16 of a dollar, which equals roughly 6.25 cents. ...