A zero minus tick is a term used in trading that describes a transaction where the price of a security is the same as the last transaction price, but the preceding transaction was at a lower price. For example, if the prices of a series of trades are $14.50, $12.00, and then $12.00 again, the final trade is classified as a zero minus tick. This term is also known as a zero downtick.
Zero minus ticks are relevant in the context of securities trading regulations. They are particularly significant in understanding trading patterns and market behavior. This term may come into play in legal discussions surrounding trading practices, market manipulation, and compliance with trading rules set by exchanges like the New York Stock Exchange (NYSE).
Here are a couple of examples of abatement:
Example 1: A trader sells shares of a stock at $12.00 after a previous sale at $12.00, following a sale at $14.50. The last transaction is a zero minus tick.
(Hypothetical example) Example 2: If a stock trades at $20.00, then $19.50, and then again at $19.50, the last transaction is also a zero minus tick.
| Term | Definition | Differences |
|---|---|---|
| Zero Plus Tick | A transaction where the price is the same as the last price, but the previous price was higher. | Opposite of a zero minus tick; indicates a stable or increasing price trend. |
| Downtick | A transaction where the price is lower than the previous transaction. | Indicates a decrease in price, while a zero minus tick indicates no change. |
If you encounter a zero minus tick in your trading activities, it is essential to understand its implications on your trading strategy. Consider reviewing your trading practices and compliance with market regulations. Users can explore US Legal Forms for legal templates that may assist in managing trading documentation or compliance issues. If you find the situation complex, consulting a legal professional is advisable.
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A zero minus tick is a trading term for a transaction at the same price as the last, with the previous transaction being lower.