Zero Minus Tick Law and Legal Definition
Zero minus tick refers to a trading transaction made at the same price as the previous transaction price but the preceding one was lower than its predecessor. For example, if a succession of trades occur in the following order: $14.50, $12.00, and $12.00. The last trade would be considered a zero minus tick. Zero minus tick is also called zero downtick.
New York Stock Exchange (NYSE) Rule 394, which remained in effect from November 7, 1966, until March 31, 1976 provided that “a specialist may buy on a plus or zero plus tick or sell on a minus or zero minus tick, any or all of the stock with respect to which a third market-maker is to be asked to participate.” [Shumate & Co. v. New York Stock Exchange, Inc., 486 F. Supp. 1333, 1336 (N.D. Tex. 1980)].
