Cytodyn Inc (CYDY)

[Wealthnotriches]

The uptick rule was first implemented in 1938 but was repealed in 2007. The uptick rule ended when Rule 201 Regulation SHO went into place in 2007.However the uptick rule tried to be reintroduced in 2009 but a modified version of the rule was adopted instead 2010. The 2010 alternative uptick Rule 201 lets traders exit their long positions before short selling can happen. This rule is triggered when the price of a stock drops a minimum of -10% on a single day. After that, short selling on the stock is allowed again when the price of the equity is higher than the best current bid.

The primary reason given for the removal of the uptick rule was that it: “Modestly reduced liquidity and did not appear necessary to prevent manipulation.”


https://www.newtraderu.com/2020/04/17/what-is-the-uptick-rule/#:~:text=The%20SEC%20defines%20the%20uptick,last%20different%20price%20(zero%2Dplus