The Price Test

What this video covers

• How the alternative uptick rule is triggered when a covered security falls 10% or more from the prior day's listing-market close, not from an intraday high
• Why a covered security means a national market system stock, and why options and over-the-counter (OTC) equity securities are excluded
• Which entities qualify as a trading center, including broker-dealers that internalize orders as principal or cross orders as agent
• How the rule prevents a short sale from being executed or displayed at or below the current national best bid without banning short selling
• How the restriction applies for the remainder of the trigger day and the following day, and how another 10% intraday decline retriggers it
• Why trading centers must permit above-the-bid displayed orders and short, exempt orders during the restriction
• Why displayed orders are tested against the national best bid at initial display, while a qualifying short, exempt order ignores the bid comparison