Types of jobbers in Stock Market
There are three kinds of jobbers as:
a) Bulls
- A jobber buys shares while prices are down and hold them in anticipation such the price will rise and sell them on gain.
- While a market is dominated through bulls buyers pre-dominate sellers and it is said to be bullish. The share prices are usually increasing.
- Consequently the market is characterized is an upward trend in security prices.
- It shows investor's confidence or optimism in the future of economy.
b) Bears
- A speculator or jobber who such sells security on expectation of decline in prices in future.
- An intention is to buy similar securities at lower prices in future for creation a gain.
- When like market is dominated via bears or sellers pre-dominate buyers and it is said to be bearish.
- It is characterized via usual downward trend in share prices. It shows investors pessimism about the future prospects of such economy.
c) Stags
- It is a jobber found in primary markets
- He buys new securities Covance to the public and believes such they are under-valued.
- He believes the price will increase and sell them on a gain to the ultimate investors
- Stags are vital since they sure for full subscription of the share issue.