The uptick rule

The uptick rule is a securities trading rule used to regulate short selling in financial markets. The rule mandates, subject to certain exceptions, that, when sold, a listed security must either be sold short at a price above the price at which the immediately preceding sale was effected or at the last sale price if it is higher than the last different price. In 1938, the SEC adopted the uptick rule, more formally known as rule 10a-1, after conducting an inquiry into the effects of concentrated short selling during the market break of 1937. [1] The original rule was implemented by Joseph P. Kennedy, Sr., the first SEC commissioner.[2]

The NASD and Nasdaq adopted their own short sale price tests based on the last bid rather than on the last reported sale.[3]

http://en.wikipedia.org/wiki/Uptick_...

Cheers & GLTATLs, DW