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Question
Jobber and stockbroker
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. |
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