Rule 396

Nine-Bond Rule

On the New York Stock Exchange, a rule requiring that members place their customers' orders for nine or fewer bonds on the trading floor for one hour. This may or may not expedite execution, but it exposes small orders to the trading floor, which may extract a better price for the customer. It is also called Rule 396.

Rule 396

See nine bond rule.

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.

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