A rule that attempts to limit short selling in a declining market. Investors are prohibited from selling an exchange-listed stock short unless the stockÂ’s last trade was at the same price or higher than the previous trade. For example, if you want to sell a stock short at $40, the previous trade must have been at $40 or higher, such as $40.20. The uptick rule comes from Rule 10a-1 of the Securities Exchange Act. The New York Stock Exchange (NYSE) also has a similar rule, Rule 440B, that applies to its member brokerage firms and to its specialists. See also short seller.