Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Uptick

What it is:

Uptick refers to the increase in the market price of a security over the preceding transaction.

How it works (Example):

If a new trading price for a security is higher than the preceding one (even by one cent), the security is on an uptick. For example, stock XYZ is trading for $10.00 per share. If the next time stock XYZ is traded it sells for $10.01, it has had an uptick.

An uptick is also sometimes called a plus tick.

Why it Matters:

Upticks are most important when it comes to short-selling stocks. The "uptick rule," which was in place from 1938-2007, required every short-sale transaction be entered on an uptick. This rule was instated to keep short sellers from putting unjust pressure on a stock's price, adding to a security's downward spiral.

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