Shorting stocks: Mechanical aspects Message Board

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Strategies & Market Trends : Shorting stocks: Mechanical aspects

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To: Shoe who wrote (33)	9/4/1997 10:06:00 AM
From: Q.	of 172

Shoe, NYSE and AMEX have one kind of uptick rule, and Naz has a different non-uptick rule. It was my understanding that you can only short NYSE and AMEX stocks on an uptick. How exactly they define an uptick I don't know. Maybe it has to do with whether the best bid has moved up or down. I could imagine that the best bid could go down and then back up, without anybody having actually traded anything.ÿWould that constitute an uptick that would allow you to trade, even at the low price for the day? I would guess so, but I don't really know. re. Nasdaq, the rule is looser. According to a brokerage margin dept. head who posted about this on AOL/TMF several months ago, the Naz rule says that if the current best (highest) bid is lower than the last previous best bid, any short sales must be executed at least 1/16 over the curent bid. If the current best bid is higher than the previous best bid, a short sale may be exectuted at the bid, although there is no guarantee your broker will do it for you.

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