Observation

The question was well attempted by most candidates.

The expected responses to the question include:

(a). Differences between Jobbers and Brokers

(b). Functions of the Stock Exchange

(i) It provides a ready market where securities can be bought and sold, thus making the securities liquid.

(ii) It facilitates easy transferability of securities from one investor to another.

(iii) It provides an active market where prices of shares are quoted and listed whether they are for sale or not, thereby enabling holders to know the value of their holdings.

(iv) It helps companies to raise new capital and governments to raise long term finance through the issue of shares and bonds respectively.

(v) The market gives indication of the state of economic activities in a country.

(vi) It protects investors by controlling effectively the activities and conduct of members of the stock exchange.

(vii) It provides advisory services to the investing public.

(viii) It sets standards for quoted companies to comply.