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Describe the 3 types of jobbers.

      

Describe the 3 types of jobbers.

  

Answers


Kavungya
a) Bulls
• A jobber buy shares when prices are low and hold them in anticipation that the price will rise and sell them at gain.
• When a market is dominated by bulls (buyers predominate sellers), it is said to be bullish. The share prices are generally rising.
• Therefore the market is characterized by an upward trend in security prices.
• It signifies investors confidence/optimism in the future of economy.

b) Bears
• A speculator/jobber who sells security on expectation of decline in prices in future.
• The intention is to buy same securities at lower prices in future thereby making a gain.
• When market is dominated by bears (sellers predominate buyers) it is said to be bearish.
• It is characterized by general downward trend in share prices. It signifies investors pessimism about the future prospects of the economy.

c) Stags
• This is a jobber found in primary markets
• He buys new securities offered to the public and believes that they are undervalued.
• He believes the price will rise and sell them at a gain to the ultimate investors
• Stags are vital because they ensure full subscription of the share issue.
Kavungya answered the question on March 12, 2019 at 05:29


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