Stock Exchange Basics For Beginners
The stock exchange is the place where the shares of the organizations that are listed bought and sold either for speculation or investment. The trading would be governed under specified rules and regulations. Unlike, the cryptocurrency market where there is no central authority to control the trading process and neither any rules or regulations are set. The trading is quite easy in cryptocurrency market as anyone with the basic knowledge of operating the computer could take part in trading using the trading platform like bitcoin code. The only thing you need to do is to choose a genuine trading platform as there are fake software’s introduced into the market. Do a thorough research and read through reviews before picking one.
Below mentioned are different kinds of functionaries who take part in the function of the stock exchange.
Main functionaries of the stock exchange
Jobbers- They are the security merchants who are dealing in debentures and shares as the independent operators. Jobbers sell and buy the securities with the aim to earn profit through changes in prices. They conduct the dealing for themselves and do not deal on behalf of others. They are barred from charging any commission as they deal directly with the brokers who make a transaction on behalf of the general public. Generally, jobbers quote 2 prices: one price he is willing to purchase and the other one he is willing to sell. The price differences between the two are the profit of jobbers which is generally called as jobber’s turn. For instance, the jobber would quote the purchase price of the company X shares at 50 dollars and they would sell them at 51 dollars. The difference between the two would be his profit.
Brokers- They are the commission agents who act as the intermediaries between the sellers and buyers of the securities. They never sell or purchase securities for themselves. They help in bringing together the sellers and buyers and makes a deal between them. Brokers charge a commission for the services rendered by both parties. Brokers are the expert in the field to estimate the price trends and can advise their clients effectively to achieve fruitful gain. The orders are received by the brokers from the public and they execute those orders with the help of jobbers. Individuals who are not aware of the technicalities or does not have time to spare to trade or invest in stock exchanges are benefitted by the broker’s expertise.