When the NYSE reduced the typical minimum tick size (also known as a Minimum Price VariantMPV) from

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When the NYSE reduced the typical minimum tick size (also known as a Minimum Price Variant—MPV) from 1/8 to 0.01, spreads and transactions costs were reduced, resulting in, according to most observers, a better-quality market. Suppose that the minimum tick size was further reduced to 0.0000001 for all stocks. How or why might such a small tick size worsen markets and impede quote posting?

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