Help! Series 7 question

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Sep 29, 2012 6:07 pm


I am taking the 7 again and remember a question that I thought was tricky.



If there is a transaction on the consolidating tape that reads 55.35.



A) Does he pay 55.35



B) Does he pay 55.35 plus a commission



C) Does he pay 55.15



D) Does he pay 55.15 plus a 5% mark up



Now I know in my book it says that stock trades are reported to the consolidated tape at the execution price without a commission.



Does this mean that the reported price doesnt include the commission but you need to add it or what?



Thanks whoever can help.

Oct 4, 2012 5:15 pm

From my materials, the tape reports the sell side and this will not include commissions or transaction costs.
So if my online broker charges me $7.50 per trade and I buy one stock at $50, the tape says $50, even though I pay $57.50 out of pocket for the stock and trade.
Hope this helps.

Dec 12, 2012 12:17 am

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