My understanding is that any time a transaction takes place, there is a spread between the selling price asked and the buying price bidded. The transaction always occurs at a slightlyhigher price than the current market price. On top of this, the market makers on the floor take a slice of this, which pushes the transaction price up a little more (am I right about this last part or do they take a slice off the existing transaction price?).
Theoretically, shouldn’t a stock with a lower per share price benefit more from these small increases, since the increases are a larger percentage of the market price?
Is the bid/ask spread smaller for lower priced stocks?