7.05  Stock Exchanges In India: · Part 3

capitalization. ix. TMX Group - The Canadian stock exchange is located in Toronto, Canada; $ . trillion in market capitalization. x. Bombay Stock Exchange - Located in Mumbai, India; $ . trillion in market capitalization. REMISERS He acts as an agent of a member of a stock exchange. He obtains businessfor his principal ie., the member and gets a commission for that service. AUTHORIZED CLERKS The authorised clerks are mere employees of the members, appointed by themember of stock exchange. The authorised clerks transact business on behalf of their employers on the floor of the stock exchange. They are paid a salary, plus acommission. BROKERS Brokers are commission agents, who act as intermediaries between buyers and sellers of securities. They do not purchase or sell securities on their behalf. They bring together the buyers and sellers and help them in making a deal. Brokers charge a commission from both the parties for their service. Brokers are experts in estimating trends of price and can effectively advice their clients in getting a fruitful gain. Brokers get orders from investing public and execute the orders through Jobbers and they are entitled to a prescribed sale of brokerage. JOBBERS Jobbers are security merchants dealing in shares, debentures as independent operators. They buy and sell securities on their own behalf and try to earn through price changes. Jobbers cannot deal on behalf of public and are barred from taking commission. In India, they are called Taravaniwalas. SPECULATION Speculation involves trading a financial instrument involving high risk, in expectation of significant returns. The motive is to take maximum advantage from fluctuations in the market. Speculators are prevalent in the markets where price movements of securities are highly frequent and volatile. GAMBLING There is no reasoning involved in gambling. It accentuates fluctuations in price and it is unethical and illegal. It does not perform economic function.