Rule 10a-1(redirected from Plus Tick Rule)
An SEC rule that formerly prohibited a short sale except on a plus tick or a zero plus tick. That is, Rule 10a-1 disallowed short sales at a price below the price at which the security traded most recently. This rule was intended to prevent short sellers from artificially deflating a security's price so that it harmed other investors. It was also called the uptick rule. It was replaced by Regulation SHO in 2007. Some have argued for its reintroduction.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A 1939 SEC rule that prohibits the short sale of a security at or below the last price at which that security was traded, unless the last price was higher than the previous different price. Rule 10a-1 was instituted to keep short sellers from battering down the price of a stock.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.