Business, Legal & Accounting Glossary
a transaction in the stock market at a price above the price of the preceding transaction
An uptick is a transaction that occurs at a higher price than the previous trade for a given security. An uptick is sometimes called a plus tick. The opposite of an uptick is a downtick. A zero uptick, while not actually a downtick, is a trade that occurs at the same price as the prior transaction where that prior trade was an uptick. The zero uptick is sometimes called a zero-plus tick. The opposite of the zero downtick is the zero uptick. The uptick and zero uptick sometimes matter in the case of short sales. For instance, SEC regulations limit certain short sales to trades that are either an uptick or a zero uptick. Such a rule is called a tick test.
Short
Naked short
An uptick is an increase in price of a security traded in the market.
The term is significant in the uptick rule which required an uptick before a short sale. This rule impeded short selling in a sharply declining market. The rule is no longer in place. Some believe that elimination of the uptick rule is a factor in the increased volatility of the stock market.
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This glossary post was last updated: 28th November, 2021 | 0 Views.