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Stock Exchange Peoples

Updated on October 5, 2009

1. Jobber

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.

2. Broker

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.

3. Bull

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.

4. Bear

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.

5. Contango

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.

6. Backwardation

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.


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    • nilum profile image

      nilum 6 years ago

      Thanks you Dear

    • profile image

      nifty tips 6 years ago

      Not all the time no one can win the match of stock market trade , humans are bounded with emotions and personal affairs that makes them to take wrong decisions at right time even though they are masters of trade. Markets dramatically change they their flow and no one exactly produce or expect 100% from their profits . Choosing the right indicator or analyzing software blended with human aspect gives better results.


      nifty tips

    • nilum profile image

      nilum 8 years ago

      To Cheeky Girl

      Thank you again to commenting me so detailed, I basically don't belong to stock exchange kind of business but i was reading this in my course and i thought that i must share these with you; maybe they are helpful for you and other but my pleasure is to write more hubs to entertain and to be information provider as much as i can

      To Waren E

      1st of all thanks for commenting me often and liking all the things e'm doing here....

      To agusfanani

      I'm sorry about it, because i don't belong to this field; these was in my course so i did write to share them.. Once again sorry dear...

    • agusfanani profile image

      agusfanani 8 years ago from Indonesia

      A good hub, can a jobber open an account so that he can transact for his own ?

    • Waren E profile image

      Waren E 8 years ago from HAS LEFT THE BUILDING............

      well done nilum,this is great knowledge you shared here!

      Thanks and God Bless!

    • Cheeky Girl profile image

      Cassandra Mantis 8 years ago from UK and Nerujenia

      Hy nilum

      Thanks for becoming a fan of mine! I am honoured. I saw this hub and liked it cos my boss is in category 1 here. He has a few of those! I pointed him towards it. Hope he will read it as he knows these categories you describe here. He lives in that world even more than most.

      Thanks for the very positive comments you sent me. I am flatered, and will work harder to make even more entertaining and informative HUBS! Visit often! Ciao!

      Ps. I wish more Bubbers would do Hubs on the Stock Exchange like you, and help to demistify this subject, its a great time to be involved in this area!