Zero Plus Tick

A security trade that is executed at the same price as the preceding trade but at a higher price than the last trade of a different price. For more than 70 years there was an "uptick rule" as established by the U.S. Securities and Exchange Commission (SEC); the rule stated that stocks could be shorted only on an uptick or a zero plus tick, not on a downtick. This rule was lifted in 2007.



For example, if a succession of trades occurs at $10, $10.25 and $10.25 again, the latter trade would be considered a zero plus tick, or "zero uptick", trade.

It was thought that short selling on downticks may have led to the stock market crash of 1929, but the uptick rule was lifted in 2007 after the SEC concluded that markets were advanced and orderly enough to not need the restriction. It is also believed that the advent of decimalization on the major stock exchanges helped to make the rule unnecessary.



Investment dictionary. . 2012.

Look at other dictionaries:

  • zero plus tick — UK US noun [S] (also zero uptick) STOCK MARKET ► the trading of a share, etc. at the same price as the previous time it traded, but for more than when it was last traded at a lower price: »Short sales can be made only on a zero plus tick. →… …   Financial and business terms

  • zero-plus tick — Used for listed equity securities. transaction at the same price as the preceding trade, but higher than the preceding trade at a different price. Antithesis of zero minus tick. Bloomberg Financial Dictionary See: short sale. Bloomberg Financial… …   Financial and business terms

  • zero-minus tick — Sale that takes place at the same price as the previous sale, but at a lower price than the last different price. Antithesis of zero plus tick. Bloomberg Financial Dictionary …   Financial and business terms

  • plus tick — Used in the context of general equities. trade occurring at a price higher than the previous sale. uptick. Antithesis of minus tick. Bloomberg Financial Dictionary See: short sale. Bloomberg Financial Dictionary * * * plus tick UK US noun [C,… …   Financial and business terms

  • Plus Tick — A price designation referring to the trading of a security at a price higher than the previous sale price for the same security. Also known as an uptick . There are several rules regarding the tick status of a security which affect the type of… …   Investment dictionary

  • Tick — Refers to the minimum change in price a security can have, either up or down. Related: point. The New York Times Financial Glossary * * * ▪ I. tick tick 1 [tɪk] noun [countable] 1. a mark that you put next to an answer to show that it is correct… …   Financial and business terms

  • tick — The smallest allowable increment of price movement for a contract. Chicago Board of Trade glossary The minimum allowable price fluctuation (up or down) for a futures contract. Different contracts have different size ticks. Ticks can be stated in… …   Financial and business terms

  • Zero uptick — Related: tick test rules. The New York Times Financial Glossary * * * zero uptick UK US noun [S] STOCK MARKET ► ZERO PLUS TICK(Cf. ↑zero plus tick) …   Financial and business terms

  • zero uptick — Related: tick test rules * * * zero uptick UK US noun [S] STOCK MARKET ► ZERO PLUS TICK(Cf. ↑zero plus tick) …   Financial and business terms

  • Plus — Dealers in government bonds normally give price quotes in 32nds. To quote a bid or offer in 64ths, they use pluses; a dealer who bids 4+ is bidding the handle plus 4/32 + 1/64, which equals the handle plus 9/64. The New York Times Financial… …   Financial and business terms

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