Stock Exchange Peoples
Jobber is the member of the stock exchange who performs important functions. He is an independent dealer in securities which are transacted in the market. He conducts the securities in his own name but the cannot deal directly with non members. In other words jobber has to deal with a broker or another jobber. He is a professional speculator who has complete information regarding the particular shares he deals in. Jobber does not transact for commission but transacts for profit which he gains from speculating activities. In brief he renders the valuable services by executing the public's orders that help to make the price fluctuations smooth.
Broker is a bonafide member of the stock exchange who deals outside the house for the purpose of bringing together his clients and jobber. In other words he is an intermediary for his clients who cannot deal directly on the stock exchange. Broker thus transacts business in securities on behalf of his clients. He generally deals in a large variety of securities. He receives commission from his clients in exchange for his services. He is an experienced agent of the public. He renders important functions in regard to deal with skilled jobbers directly.
He is a speculator who buys different types of shares in the expectations of rise in their price in future. He may sell these securities at the expected higher price without their coming into his possession. He is regarded as potential seller in reaping of his profit. He sustains losses if the prices falls instead of rising.
He is also speculator who sells various securities for the objective of taking advantages of an expected fall in the prices. He is always in a position to impose of a securities which he does not possess. In this way he makes profit on each transactions. He may suffer losses if the price of security rises by the date of delivery. As he feels the prices will certainty fall in future so he is considered as potential buyer.
Contango is a term denoted for the practice of carrying over dealing to the next settlement. It is also regarded as interest which must be paid to the broker by buyers. In some cases, the purchaser shows his inability to pay the process of the securities on any specific date. So he requests the broker to carry over the transaction to the next bargain. For this the broker is paid a remuneration described as contango.
This term describes the charge or interest paid by the seller of securities who wishes to postpone transaction to the next account. Sometimes the seller is not in a position to make delivery on the settlement day. So he wants to arrange to carry over the transaction to the next account. Sometimes the seller is not in a position to make delivery on the settlement day. So he wants to arrange to carry over the transaction to the next bargain. The buyers is thus paid a charge denoted as Backwardation.
More by this Author
The principal types of fire insurance policies are given. below: 1. Valued policy When the agreed value of the subject matter is mentioned in the policy is named as valued policy. This value may not...
The factors which influence the prices of stock exchange are as follows: 1. Demand and Supply The forces of demand and supply determine the prices of securities. If a particular security is available in...
Life assurance differs from the fire and marine insurance in the following respects: Distinction point between, Life assurance, Fire Insurance & Marine Insurance respectively !!! 1....