1. Meaning: -
A dealer who deals in buying and selling of securities is called a jobber.
2. Dealings: -
A jobber carries on trading (dealings) only with the broker.
3. Restrictions: -
A jobber cannot directly buy or sell securities in the stock exchange. He cannot deal directly with the investors
4. Types of Agent:-
A jobber is a special 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.
6. Proportion of consideration: -
The proportion of consideration (profit) payable to a jobber is determined by the completion of jobbers.
1. An agent who buys or sells the securities on behalf of his principal or client is called a broker.
2. A broker carries on trading (dealings) with the jobber on behalf of his investors.
3. A broker acts as a link (middleman) between the jobber and the investors. He purchases and sells securities on behalf of his investors.
4. A broker is a general mercantile agent.
5. 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. The rate or amount of brokerage payable to a broker is fixed by the stock exchange rules and regulations.