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Short Exempt |
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Short exempt Used for listed equity securities. A special trading situation where a short sale is allowed on a minustick. The owners of a convertible trading at parity can sell the equivalent amount of common short on a minus tick, assuming they have the firm intention to convert. Short Exempt A short sale exempt from the short sale rule, which was a rule requiring that short sales occur only after upticks or zero plus-ticks. Convertible securities were sometimes short exempt. This is no longer important as the short sale rule is not in effect anymore.
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