Monday, March 8, 2010

Uptick rule for short selling

What is the uptick rule?

In the past, you couldn't sell short when there was a down tick (i.e. the stock's last move in price was down in price). This was to prevent stocks that were already going down from going down even further because of short sellers. Starting in 2007 this rule was eliminated, although it might be reinstated either fully or in a modified version.