Help! Series 7 question
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.
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.
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