GCECommerceStock Exchange2020

Which of the following best distinguishes a stockbroker from a jobber on the stock exchange?

AA stockbroker deals only in government securities while a jobber deals in company shares
BA stockbroker acts as an agent for investors while a jobber acts as a principal dealing in securitiesCORRECT
CA stockbroker sets the prices of securities while a jobber executes transactions
DA stockbroker purchases securities for his own account while a jobber acts on behalf of clients
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Why the answer is B, and why the others tempt you.
A stockbroker is an agent who buys and sells securities on behalf of clients and earns a commission, while a jobber (market maker) deals in securities as a principal, buying and selling on their own account and making profit from the spread. They interact with each other on the floor of the exchange, not directly with the public.
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