STOCK MARKET TERMINOLOGY
1. BROKER
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A dealer at the market who buys and sells securities on behalf of the public investors.
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He is an agent of investors
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He is the only authorized person to deal with the quoted securities. He is authorized by CMA and NSE
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He obtains the suitable deal for his clients/investors, gives financial advice and charges commission for his services.
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He doesn’t buy or sell shares in his own right hence he cannot be a market marker.
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He must maintain standards set by the stock exchange.
2. JOBBERS/SPECULATORS
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This is a dealer who trades in securities in his own right as a principal.
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He can set prices and activate the market through his own buying and selling hence he is a market maker.
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He engages in speculation and earns profit called Jobbers’ turn (selling price – buying price).
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He does not deal with members of the public unlike brokers. However, brokers can buy and sell shares through jobbers.
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