ZIMSEC O Level Commerce Notes: Business Organisations: People on the Zimbabwe Stock Exchange
The stock broker
- an agent/middleman between members of the public and the stock jobber.
- Buys and sells existing shares on behalf of the public.
- Gets the best prices for clients
- Advises clients on market conditions.
- Arranges payment for shares traded.
- Arranges transfer of share certificates.
- Drafts a contract note.
The stock jobber
- A trader/merchant/wholesaler who buys and sells shares, stocks and bonds as well as other second hand securities.
- Trades in special types of shares e.g. shares in the financial sector.
- Deals directly with stockbrokers rather than with members of the public.
- Works on the Stock Exchange floor.
- Displays share prices.
- Earns a jobber’s profit which is the difference between the selling and buying price of securities.
Speculators on the Stock Exchange
- Anticipates that share prices will fall and therefore sells the shares they have in their possession in order to buy them later.
- A bearish market occurs when share prices are falling in general.
- Anticipates share prices will go up and buys some shares now in order to sell them later.
- A bullish market occurs when share prices are rising in general.
- Buys all new shares of a company which have not been bought by members of the public.
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