SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 41: Answer and Explanation

Question: 41

Which of the following is NOT included in cost basis of a security?

• A. Commissions
• B. Markups
• C. Sales proceeds
• D. Purchase price

Correct Answer: C

Explanation:

C: Choice C is correct because sales proceeds are not received at the time of purchase, for which cost basis is calculated. Choices A, B, and D are incorrect because they are costs included in the purchase.