Jobber and Broker
Q.4 (3) Jobber and Broker
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Answer:
| Points | Jobber | Broker |
|---|---|---|
| Meaning | A dealer in securities who buys and sells on his own account. | An agent who buys and sells securities on behalf of clients. |
| Dealing with | Deals only with brokers (members), not with the public. | Deals with the investing public and with jobbers / other members. |
| Income | Earns profit called ‘turn’ or ‘spread’, the difference between buying and selling prices. | Earns commission called brokerage. |
| Capacity | Acts as principal. | Acts as agent. |
| Specialisation | Specialises in particular securities. | Deals in all kinds of securities as clients require. |
| Risk | Bears the risk of price changes on his own stock. | Bears no price risk; the client bears it. |
| Present status | The system of jobbers is no longer in use on Indian exchanges (replaced by market makers). | Brokers registered with SEBI continue as members of exchanges. |
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· 28 Oct 2026
AI-verified · Oct 2026
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