SIE Exam Question 246: Answer and Explanation

Question: 246

A customer wishes to liquidate 100 shares of ABC common at the market. If the current inside market is 904.78 – 905.57, the client's transaction will occur disregarding commissions and other charges at

• A. 905.57
• B. 904.78
• C. at a price agreed to between the firm and the customer
• D. at the last transaction price prior to entering this order

Correct Answer: B

Explanation:

B: The best (inside) bid is the price at which a client's liquidation (sell) order will be executed.