SIE (Securities Industry Essentials) Practice Exam

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What happens when a customer's NYSE stock purchase is reported at a different price than the executed transaction price?

The client pays the initially quoted price
The transaction is nullified
The client pays the price at which the trade was executed
The broker covers the difference in price

The correct answer is: The client pays the price at which the trade was executed

When a customer's NYSE stock purchase is reported at a different price than the executed transaction price, it means that the trade was executed at a different price than originally quoted to the client. This can happen due to market fluctuations or delays in reporting. In this situation, the client will end up paying the price at which the trade was actually executed. This is because the executed price is the true and final price at which the trade took place. Option A is incorrect because the client will not pay the initially quoted price. Option B is incorrect because the transaction is not nullified, it is still valid at the executed price. Option D is incorrect because it is not the broker's responsibility to cover the difference in price.