Zero Minus Tick

Zero Minus Tick
A securities trade executed on an exchange at the same price as the preceding trade, but at a lower price than the last trade of a different price. For example, if a succession of trades occur in the following order - $10.25, $10.00, and $10.00 - the last trade would be considered a zero minus tick or zero downtick trade.

Until 2007, Securities And Exchange Commission (SEC) regulations prohibited against selling a stock short on a down tick or a zero minus tick. As a result potential short sales would have to pass a tick test to make sure that the stock was trading up or flat before the short sale could go through. The restriction was eliminated after the SEC concluded that U.S. markets functioned orderly enough that excessive short sales would not artificially drive down prices. The advent of decimalization also helped the rule get lifted because it reduced the average size of a tick move from fractions to pennies.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • 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

  • 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 —   Vendita di un titolo azionario a un prezzo equivalente a quello dell ultima transazione eseguita, ma inferiore a quello dell ultima operazione avvenuta a un differente prezzo …   Glossario di economia e finanza

  • Minus Tick — Designates a trade that occurs at a lower price than the immediately preceding trade. Also referred to as downtick or zero minus tick . Brokerage firms require that short sell orders follow the tick test , which means that if a stock is trading… …   Investment dictionary

  • 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

  • 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

  • buy minus order — In the context of general equities, rare market or limit order to buy a stated amount of a stock, provided that the price to be obtained is not higher than the last sale if the last sale is a minus or zero minus tick, and is not higher than the… …   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

  • минимальное изменение котировок, тик — Рост или спад котировок в операциях с ценными бумагами. Технические аналитики наблюдают за последовательностью колебаний котировок ценных бумаг вверх или вниз для того, чтобы почувствовать общее направление тенденции в динамике котировок ценных… …   Финансово-инвестиционный толковый словарь

  • просроченный опцион — Опцион (option), по которому наступила дата истечения и который не был исполнен и, следовательно, стал бесполезным. last sale: последняя продажа. Последняя сделка с данными ценными бумагами. Не следует путать с последней сделкой торговой сессии… …   Финансово-инвестиционный толковый словарь

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