Types of jobbers in stock market, Finance Basics

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Types of jobbers in Stock Market

There are three kinds of jobbers as:

a) Bulls

  1. A jobber buys shares while prices are down and hold them in anticipation such the price will rise and sell them on gain.
  2. While a market is dominated through bulls buyers pre-dominate sellers and it is said to be bullish. The share prices are usually increasing.
  3. Consequently the market is characterized is an upward trend in security prices.
  4. It shows investor's confidence or optimism in the future of economy.

b) Bears

  1. A speculator or jobber who such sells security on expectation of decline in prices in future.
  2. An intention is to buy similar securities at lower prices in future for creation a gain.
  3. When like market is dominated via bears or sellers pre-dominate buyers and it is said to be bearish.
  4. It is characterized via usual downward trend in share prices. It shows investors pessimism about the future prospects of such economy.

c) Stags

  1. It is a jobber found in primary markets
  2. He buys new securities Covance to the public and believes such they are under-valued.
  3. He believes the price will increase and sell them on a gain to the ultimate investors
  4. Stags are vital since they sure for full subscription of the share issue.

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