I have read posts on this forum than for CFAi purpose uptick rule still exists. According to schweser uptick rule for short selling has been eliminated since June 2007. What is the word for exam ?
was wondering the same thing. the uptick rule definitely does not exist right now.
It is my understanding that the rule did go away, but the material for the exam still states it in force. Therefore I guess if it comes up I would side with the curriculum.
r u sure ? !!
Schweser SS#13 LOS 52.f The uptick rule states that stocks can only be shorted in an up market. There is a professors note that states it was eliminated in June 2007, but these notes are Schweser helpful items, not curriculum data. Otherwise I would assume the curriculum would state it went away, or eliminate the uptick mention entirely.
ok thunder and mib confused me for a second 
So, what’s the final verdict ? a. Uptick rule exists b. Uptick rule is gone
Exists. So says Stalla too.
agreed with map1. Exists for all matters related to the exam Does not exist in real life
thank you guys !
I can’t imagine this will be on the test. If it is, they would have to give credit for both answers no??
I do not think the CFAI would include a question on the uptick rule given the conflict between what the material says and the fact that the rule was abolished in June '07.
uptick rule exists for curriculum. its easy to remmeber, the last price quoted must be less than or equal to the price that you short.
i cant imagine they would ask a question that is no longer applicable, but if they do are we assuming the uptick rule is still in existence?
mib20 Wrote: ------------------------------------------------------- > i cant imagine they would ask a question that is > no longer applicable, but if they do are we > assuming the uptick rule is still in existence? They asked it in Mock exam ! Won’t be surprised if it shows up on main exam too
thunderanalyst Wrote: ------------------------------------------------------- > They asked it in Mock exam ! Won’t be surprised if > it shows up on main exam too Thunder, My thought would be that if they included a question like this it would be open to challenge by anyone who gets the question wrong. Why would they want the hassle of potentially having to rescore thousands of exams?
Does anyone know what ‘proceeds’ from short sales means? And why an investor is not entitled to it?
Sale short: sale something that you don’t have, but you borrow from the broker, in hopes the asset price goes down and when you’ll have to get it back to your broker is cheaper in the market, so you’ll pay less for it. Proceeds are deposited in the margin account, and held for mark to market each day (to cover losses and keep gains).
so its the $ you receive at the beginning, when you sell the shares?
I called schweser cause I got this question in qbank and thought it was wrong. They said that for the test, you should assume that the uptick rule still exists. I doubt that they would actually test you on an out of date topic though.