Advertisements
Advertisements
Question
Jobber and stockbroker
Advertisements
Solution
| Points | Jobber | Broker |
| 1. Meaning | A dealer who deals in buying and selling of securities is called a jobber. |
An agent who buys or sells the securities on behalf of his principal or client is called a broker. |
| 2. Dealings | A jobber carries on trading (dealings) only with the broker. | A broker carries on trading (dealings) with the jobber on behalf of his investors. |
| 3. Restrictions | A jobber cannot directly buy or sell securities in the stock exchange. He cannot deal directly with the investors | A broker acts as a link (middleman) between the jobber and the investors. He purchases and sells securities on behalf of his investors. |
| 4. Types of agent | A jobber is a special mercantile agent. |
A broker is a general mercantile agent. |
| 5. Consideration | A jobber gets consideration for his efforts in the form of profit. The positive difference between sale and purchase of securities constitutes his profit. | A broker gets consideration for his efforts in the form of commission or brokerage. The rate or amount of brokerage is fixed by stock exchange rules. |
| 6. Proportion of consideration |
The proportion of consideration (profit) payable to a jobber is determined by the completion of jobbers. | The rate or amount of brokerage payable to a broker is fixed by the stock exchange rules and regulations. |
APPEARS IN
RELATED QUESTIONS
Explain any three functions of stock exchange.
An institution which regulates and controls the activities of the Stock Exchange is called _______.
Write a word or a term or a phrase which can substitute each of the following statements:
The highest price quoted by a buyer to buy a specified number of shares or stock at any given time.
Write notes on Functions of S.E.B.I.
Write notes on.Functions of stock exchange.
A market place where existing securities are bought and sold.
State, with reason, whether the following statement is True or False.
Stock exchanges reflect financial progress of the company.
What is the common name for Beneficiary Owner Account, which is to be opened by the investors for trading in securities?
Name any two details that need to be provided by the investor to the broker while filling a client registration form.
Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker.
Explain the features of stock exchange.
_____ is the oldest stock exchange in the world.
There are _____ stock exchange in the country.
What is meant by Stock Exchange?
Define Stock Exchange.
The total number of Stock Exchange in India is
______ was developed in Ahemdabad as Ahmedabad Stock Exchange (ASE) in 1894.
Which of the following is a function of the stock exchange?
Read the following text and answer the following questions on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
Employ more of cheaper debt may enhance the EPS. Such practice is called :
