(a) State four functions of Money: (b)Explain how the following operators function on a stock...
(a) State four functions of Money:
(b)Explain how the following operators function on a stock exchange
Explanation
(a) i) It serves as a medium of exchange
ii) It serves as a standard of deferred payment
iii) It is used as a unit of account
iv) It is used as a measure of value
v) it serves as a store of value
(b) I) Bull: This is a speculator who buys and sells securities with the intention of reselling them at a higher price before the payment of the securities is due.
ii) Jobber: A jobber buys and sells securities on his own for a profit called jobbers' turn.
iii) Broker: This is an individual or firm who links buyers and sellers of securities with jobbers and earns a commission known as brokerage.
iv) Stag: This is a speculator who subscribers to new issues of shares in the hope of selling them at a profit when dealing in them begin.