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Better prices on NYSE?
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December 11, 2000: 11:10 a.m. ET
Report: SEC study says investors get better prices on NYSE than Nasdaq
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NEW YORK (CNNfn) - An upcoming study by the Securities and Exchange Commission is expected to reveal investors get better prices on the New York Stock Exchange than the Nasdaq stock market, according to a published report Monday.
The Wall Street Journal, citing people who have seen preliminary parts of the study, said the report shows a disparity in the bid-and-ask spread for similar stocks on the two exchanges. A final version is expected in upcoming weeks.
The reason for the disparity is attributed to the difference between an "auction" exchange like the NYSE and an exchange based on market makers, like the Nasdaq, the newspaper said.
A source at the SEC confirmed the Commission is working on a study about prices at the exchanges, but gave no indication as to the contents or findings of the study.
Officials at the Nasdaq and NYSE declined to comment because they have not yet seen the report.
While the study does not accuse Nasdaq of any wrongdoing, it could hurt the image of the exchange, which has tried to eliminate any appearance of impropriety after a price-fixing suit in the mid-90s.
In 1994, investors brought a price-fixing suit against more than 30 Wall Street firms for the manipulation of the spread in more than 1,000 Nasdaq stocks. The suit was eventually settled in 1996 for about $910 million.
According to the Journal, Nasdaq economists have questioned the study's methodology, arguing that Nasdaq's technology stocks are more volatile. 
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