Distinguish between the following.
1. Jobber and Broker.
Jobber is one who buys and sells securities in his own name.
Broker is an agent who deals in buying and selling of securities on behalf of his client.
(2) Nature of Trading
A jobber carries out trading activities only with the broker.
A broker carries out trading activities with the jobber on behalf of his investors.
(3) Restrictions on Dealings
A jobber is prohibited to directly buy or sell securities in the stock exchange. Also he cannot directly deal with the investors.
A broker acts as a link between the jobber and the investors. He trades i.e. buys and sells securities on behalf of its investors.
A jobber is a special mercantile agent.
A broker is a general mercantile agent.
(5) Form of Consideration
A jobber gets consideration in the form of profit.
A broker gets consideration in the form of commission or brokerage.