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           Term of the Day - September 13th, 2004
              http://www.investopedia.com
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Term Of The Day: Tick Test Rules
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Restrictions on when a short sale may be executed. Tick-test 
rules dictate that a short sale can be made only in two 
situations: 

1. When the price of the particular stock is higher than the 
last trade price (an uptick). 

2. In a case where there is no change in the last trade price, 
the previous trade price must be higher than the trade price 
that preceded it (a zero uptick or zero plus tick). 


Investopedia Says:
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This rule is intended to prevent investors from destabilizing 
the price of a stock when it's falling. 

Also known as the short sale rule


Related Links:
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Tutorial:  Short Selling Tutorial
http://www.investopedia.com/university/shortselling/

Article:  Short Interest - What Does It Tell Us?
http://www.investopedia.com/articles/01/082201.asp

Article:  Stock Manipulation in a Bear Market
http://www.investopedia.com/articles/analyst/030102.asp


Related Terms:
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Short Covering
http://www.investopedia.com/terms/s/shortcovering.asp

Short Interest
http://www.investopedia.com/terms/s/shortinterest.asp

Short Interest Ratio
http://www.investopedia.com/terms/s/shortinterestratio.asp

Short Interest Theory 
http://www.investopedia.com/terms/s/shortinteresttheory.asp

Short Selling
http://www.investopedia.com/terms/s/shortselling.asp

Short Squeeze 
http://www.investopedia.com/terms/s/shortsqueeze.asp

Zero Plus Tick
http://www.investopedia.com/terms/z/zeroplustick.asp



Have a Great Day!

The Investopedia Staff
http://www.investopedia.com


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