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Question
Explain the following term/concept.
Broker
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Solution 1
A broker is a member of a stock exchange who is licensed by the stock exchange to buy or sell shares on his client’s behalf. He is an agent between the investors and the jobber. He earns income in the form of commission or broking.
Solution 2
- A broker is a registered member of a stock exchange who is authorised to buy or sell shares on behalf of their clients. Brokers carry out transactions with jobbers on the investor’s behalf.
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They earn a fee for their service, known as commission or broking, which is determined according to the rules of the stock exchange. While executing the buying or selling of securities for clients, brokers negotiate prices through bargaining.
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