Difference Between Broker and Jobber (5 Points) | Important Article
Table of Contents
Difference Between Broker and Jobber
Meaning of Broker
He is a member of a stock exchange who is licensed by the stock exchange to buy or sell shares on his client’s behalf. He is an agent between the investors and Jobber. His income is in the form of commission or brokerage.
Meaning of Jobber
A Jobber is a dealer in stock exchange who carries on trading of securities in his own name. He buys securities as an owner and sells them at a higher price. The profit he makes is his income. He is a professional speculator in the stock exchange. He is not permitted to deal with investors directly.
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Difference Between Broker and Jobber
| Points | Jobber | Broker |
| 1) Meaning | A broker is an agent who deals in buying and selling of securities on behalf of his client. | 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. |
| 4) Agent | 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. |
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