short sale rule
A Securities and Exchange Commission (SEC) rule that prohibits initiating a short sale at a lower price than where the previous trade took place. The purpose of the short sale rule is to prevent runaway panic selling, which is generally believed to be responsible for the stock market crash of 1987. It is also known as the uptick rule because it requires that orders to sell short be submitted only on an uptick.
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Efficient Market Hypothesis
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