Zero Minus Tick - Definition

A trade on a security that occurs at the same price as the security's previous trade, which was itself less than the price on the trade before that. For example, a security that trades for $5 at 10:00, $4.90 at 10:01, and $4.90 at 10:02 has experienced as zero-minus tick. Until 2007, a short sale was not permitted on a zero minus tick.

The Basis for the zero minus tick (also known as zero downtick) involves the careful structuring of two sets of transactions. Each set will include two individual transactions that are conducted using the same price. The second set in the series will involve a price that is slightly less than the previous set of transactions. As an example, the first set may feature a price of 30, while the following set will sport a price of 28. The resulting downswing in the price is referred to as a downtick. When conducted in sets of two, the zero downtick is created, since there is no change in the difference between the price of the current Transaction and the previous one.

Terms near "Zero Minus Tick"

Zero Plus Tick

Zero Prepayment Assumption

Zero-Based Budgeting (ZBB)

Zero-Beta Portfolio

Zero-Coupon Bond

Zero-Coupon Certificate Of Deposit (CD)

Zero-Coupon Convertible

Zero-Coupon Mortgage

Zero-Floor Limit

Zero-Investment Portfolio