Re: Stocks - the shame of it

[Bob Fulks <bfulks@xxxxxxxxxxxx>]

At 10:37 PM -0500 3/21/98, Tom Cathey wrote:

>Most stock traders would agree that a spread of 15 bid - 15 1/8 ask  is
>fair and not bad for an average stock.
>
>Imagine  that this equates to the S&P 500 future having  an  1100 bid and
>1108.80 ask ????
>(It's normally 1100 bid 1100.10 ask)
>
>To equate to this S&P spread, the $15 stock would now be 15 bid - 15
>1/11000 ask  ....a little better , huh?


The spread is about the same in dollars for a typical order.

For your S&P example, "It's normally 1100 bid 1100.10 ask", the spread on
one contract is 0.10 x 1000 = $100.

For your stock example, "15 bid - 15 1/8 ask", on a trade of 1000 shares it
is 0.125 x 1000 = $125.

Bob Fulks