Erroneous Report

Definition - What does Erroneous Report mean?

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.

Testopedia explains Erroneous Report

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.

Connect with us

Testopedia on Linkedin
Testopedia on Linkedin
"Testopedia" on Twitter

Sign up for Testopedia's Free Newsletter!