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Sep 29, 2012 10:07 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 9:15 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.

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