Uptick Rule: An SEC Rule Governing Short Sales

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The rule applies only when a stock’s price plunges by 10% or more from the previous day’s closing price. It permits short selling of such stocks at a price higher than their last trading price. The Securities and Exchange Commission (SEC) introduced an “alternative uptick rule” in February 2010 that was designed to promote market stability and preserve investor confidence during periods of volatility.

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Furthermore, the Modi government returned to rule in coalition in June, preoccupied with a host of other domestic and foreign issues. Now faced with a tide of terrorist attacks across Indian-administered Kashmir, it may be forced to confront the reality that the revocation of Article 370 was not a panacea. A failure to do so will undermine Abdullah’s new state government in Jammu and Kashmir and ensure a bloody future. The unhappiness of Kashmir Valley residents was palpable in the aftermath of the abrogation of Article 370.

Understanding Why Short Selling Is Legal

Short selling refers to an exchange of securities through a broker on margin. An investor borrows a stock, sells it, and then buys the stock back to return to the lender. Broker-dealers loan securities to review lessons in corporate finance: clients for the purpose of short selling.

• By leveraging this real-time data, traders can identify trends, predict price breakouts, and make quick decisions—which is especially useful for day traders and scalpers.
• A tick chart is a type of trading chart that plots price movements based on the number of trades rather than time intervals.
• You stay with the cash and buy back the shares when they drop to your target.

What is the Uptick Rule?