Listen to a Business English Dialogue About Zero plus tick
Ariel: Hi Scarlett, have you heard about the term “zero plus tick” in business and finance?
Scarlett: No, what does it mean?
Ariel: A zero plus tick refers to a trade made at the same price as the previous trade, but higher than the last different price.
Scarlett: Oh, I see. So, it’s a way to regulate the price at which stocks are traded?
Ariel: Exactly. It’s a rule designed to prevent downward pressure on stock prices during times of market volatility.
Scarlett: Are there any other tick regulations that investors should be aware of?
Ariel: Yes, there’s also the “zero minus tick,” which is when a trade is executed at the same price as the previous trade but lower than the last different price.
Scarlett: I see. So, these regulations help maintain orderly trading in the market?
Ariel: Yes, they help prevent excessive downward or upward pressure on stock prices, promoting fair and efficient markets.
Scarlett: That makes sense. It’s important to have rules in place to ensure market stability.
Ariel: Absolutely. Tick regulations are one of the many tools regulators use to maintain market integrity.
Scarlett: Thanks for explaining, Ariel. Tick regulations seem like an essential aspect of market regulation.
Ariel: No problem, Scarlett. It’s important for investors to understand how these regulations impact their trading activities.
