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A trade in a particular stock at a price lower than the trade immediately preceding it. On U.S. stock exchanges, you cannot sell a stock short on a downtick.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
On an exchange, a transaction in which a security was traded at the lower price than its previous trade. Some regulations and rules on exchanges forbid certain transactions following a minus tick or a zero-minus tick, though some rules, notably as the short sale rule, have become obsolete with increased digitalization of the market. A minus tick is also called a downtick.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A downward price movement for a security transaction compared with the preceding transaction of the same security. Also called minus tick. Compare uptick.
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.
When a security sells at a lower price than its previous sale price, the drop in value is called a downtick. For example, if a stock that had been trading at 25 sells at 24.99 the next time it trades, the 1 cent drop is a downtick.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.