Why is the brokerage paid to the broker during the sale and purchase of shares is included in national income? |
Because It is part of compensation to employees Because sale and purchase of shares is added Because brokerage adds to the corresponding flow of goods and service Because we include this in operating surplus |
Because brokerage adds to the corresponding flow of goods and service |
Services rendered by the broker is productive in nature i.e. they add to the flow of goods and services in the economy. Thus, we include it while calculating the national income. Although, sale of shares itself is not included while calculating the national income. |