The compensation given to brokers who sell shares to jobbers is called

Assessment: WAEC SSCE - Commerce - 1997 (Objective) Subject: Commerce

Question 1 Report

The compensation given to brokers who sell shares to jobbers is called
Answer Details
The compensation given to brokers who sell shares to jobbers is called "commission". When investors want to buy or sell shares in the stock market, they usually use a broker to help them execute the transaction. Jobbers are market makers who specialize in buying and selling large volumes of shares for their own account. Brokers can earn money by charging their clients a commission for their services. When a broker sells shares to a jobber, they earn a commission based on the value of the transaction. This commission is their compensation for facilitating the transaction. Premium refers to an additional amount paid on top of the normal price, salary refers to a fixed payment made to an employee, interest refers to the cost of borrowing money, and dividend refers to a payment made by a company to its shareholders as a share of its profits. While these terms may be related to finance and investments, they do not specifically refer to the compensation given to brokers who sell shares to jobbers.

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