Brokers And Jobbers

Brokers And Jobbers

Brokers and Jobbers

The stockbrokers deal on the 'floor' with those who actually hold blocks of shares. These are known as jobbers, and it is from them that the brokers buy and to whom they sell. Most jobbers specialise in one or other sections of the market, and all of them together constitute the market.

There are two prices for each security, a selling price and a buying price, e.g., £50 and £64 per share. If you wish to buy, you buy at the higher price (50 64); if you wish to sell, you sell at the lower price (305). The difference of, say, 6d, between the two prices is the jobber's profit (also called the jobber's turn) per stock unit or share. It is the middle price which generally appears in the newspapers, and in this example would be £50 .

There are more than 10,000 securities quoted on the stock exchanges of Britain. Some 4,000 of these securities are in manufacturing industries. There are over 3m investors who by their dealing decide the course of the fluctuating prices of these markets. These investors consist in the main of the large investing institutions, which are: Insurance companies (Prudential has over £l,000m in investments i) banks, investment companies and unit trusts, pension funds, commercial companies, church commissioners, co-operative societies, trade unions, building societies and local authorities.

Next come numerous foreign investors (wealthy individuals and institutions). But by far the biggest part of the 3m investors are investors like yourself; who may, and sometimes do, form themselves into groups of investors (clubs), or operate entirely individually and are referred to as the small investors.


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