People on the Zimbabwe Stock Exchange

The stock broker

Is:

• 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

Bear

• 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.

Bull

• 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.

Stag

• Buys all new shares of a company which have not been bought by members of the public.

To access more topics go the Commerce Notes page.