Ques
1) “Stock exchange are the barometer of the
economy”. Discuss.Answer :
The Stock Exchanges are
governed by Government rules and laws but in turn they also play an important
role in determining the policy of the We find from the above discussion that the Stock
Exchanges play a very significant role in the development of capital which is
very essential for the growth of economy of any country. The changes in the
sensex, which is usually flashed in the T.V. news, goes on the prove how the
economic market is sensitive to the rise and fall of the important shares not
only in respect of the case of national companies but also to some of the
important international ones. Ques
2) Distinguish between brokers and jobbers giving the functions of each. Answer :
Both the brokers and jobbers are members of the House
(the Stock Exchange). But there is a distinction between them. Brokers are, in
fact, Commission agents who act on behalf of the public or non-members. The
general public can purchase or sell shares only through brokers. Brokers
receive a fixed rate of commission for their services. Jobbers are wholesaler
dealers in securities. They do not deal with the general public. They deal only
with brokers or other jobbers. They deal in certain securities in their own
right. They work for profit. Their job involves a great risk. Government with regard of industry and finance. They,
thus, are the nerve centres of the economy of the country. In a Stock-Exchange
a man’s word is the bond. It is rather well-organised as it is the principal
and biggest centre of trade in terms of securities.
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