Basically the title. How do stock prices fluctuate by less than a cent if dollars are only normally broken down as far as cents? I routinely see prices for some stocks go up or down by this little.
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It’s not illegal to make something cost less than the minimum unit of currency, or to not have an integer number of cents. If you’re in the US, you might have noticed that gas stations often price gallons of gas including partial cents. The rounding to the cent only matters after the total price of a transaction is calculated.
If I buy 100 shares for $100.00 and then sell them for $100.01, the share price just went up by a hundredth of a cent.
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