Definition of Erroneous Report

Erroneous Report is a report of an execution given in error to a client. The report is not binding on the firm or on the agent.

Applying "Erroneous Report" to Securities Exams:

If a trade execution is reported to a client at a price and it later turns out that the trade was actually executed at a different price an erroneous report has occurred. The client must accept the trade terms as the trade actually occurred. If however the order was executed at a price that was away from the customer’s limit price or for more shares than the customer wanted to buy or sell those issues would not be binding upon the customer.

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