In another outgrowth of the May 6 Flash Crash, the Securities and Exchange Commission Monday approved rules that would effectively prohibit "stub quotes" in the U.S. equity markets.
Prices of "terrific U.S. stocks" as SEC chairman Mary Schapiro had put it earlier in the day at the Securities Industry and Financial Markets Association annual meeting in New York fell to a penny that day, for brief times, when demand for stocks essentially evaporated. All that was left were "stub quotes'' that brokers put in without actual expectation that they'd be fulfilled.
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