- Tick-Test Rules
- These are the rules imposed by the SEC on a short sale execution to prevent the stock from being destabilized, especially when its price is on the fall in the market. These rules say that a short sale can be executed only when:
1. The price at which the stock is being short sold is higher than its last traded price
2. Or in case no change occurred in the price of the stock in the last trade, then the trade price in the previous session should be higher than the short sale price.
Random Finance Terms for the Letter T