Exchange Currency

tick-test rules

Rules that once governed how and when stock short sales could be made, but are now no longer enforced. The tick-test rules were established by the SEC through Rule 10a-1. There were two components of the tick-test: first, that a short could only be made on a price uptick or second, that a short could be made if there was no change in price assuming the previous trade was an uptick. This rule is no longer in place, as the SEC officially removed Rule 10a-1 on June 6, 2007. The rule was originally intended to prevent investors from causing a stock to plummet when its price was already going downwards.

Related information about tick-test rules:
  1. Tick Test Rules Definition | Investopedia
    Tick test rules dictated that a short sale could be made only in two situations: 1. When the price of the particular stock was higher than the last trade price (an ...
     
  2. Tick-test rules - Financial Dictionary - The Free Dictionary
    SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors from destabilizing the price of a stock when the market price is ...
     
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  4. What is tick-test rules? definition and meaning
    Definition of tick-test rules: Rules that once governed how and when stock short sales could ... The tick-test rules were established by the SEC through Rule 10a- 1.
     
  5. Tick-test rules Definition - NASDAQ.com
    Tick-test rules : read the definition of Tick-test rules and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
     
  6. Canadian regulator removes short-selling “uptick” rule - Financial Post
    Mar 2, 2012 ... This exemption to the Canadian “tick-test” rules coincided with the removal of all short sale price restrictions in the United States. A modified ...
     
  7. Common Investment Concepts | Ameriprise Financial
    Tick-test rules: SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors from destabilizing the price of a stock when the ...
     
  8. T Definitions: Campbell R. Harvey's Hypertextual Finance Glossary
    Tick-test rules: SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors from destabilizing the price of a stock when the ...