Jobber and Broker
Q.4 (iv) Jobber and Broker
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Answer:
| Points | Jobber | Broker |
|---|---|---|
| Meaning | A member of the stock exchange who buys and sells securities in his own name as a dealer. | A member of the stock exchange who buys and sells securities on behalf of his clients, as their agent. |
| Dealing with public | Deals only with brokers, not directly with the public. | Deals directly with investors (the public). |
| Capacity | Acts as a principal (trader). | Acts as an agent. |
| Income | Earns profit called the ‘turn’ or ‘spread’, the difference between buying and selling prices. | Earns commission called brokerage. |
| Specialisation | Usually specialises in particular securities. | Deals in all types of securities as instructed by clients. |
| Risk | Bears the risk of price changes as he holds the securities. | Bears no price risk, as he trades for clients. |
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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