Big number, big spread

July 24, 2016 01:00 PM

The table includes the top 10 U.S. stocks by market capitalization as referenced in “Stock splits for the middle class,” (page 82). The spreads for the highest prices stocks can be as much as five times greater on a percent basis than their lower-priced counterparts. This cost adds up and prevents lower capitalized retail investors from participating. 

About the Author

Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange.