TYPES OF JOBBERS/SPECULATORS
a) Bulls
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A jobber buy shares when prices are low and hold them in anticipation that the price will rise and sell them at gain.
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When a market is dominated by bulls (buyers predominate sellers), it is said to be bullish. The share prices are generally rising.
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Therefore the market is characterized by an upward trend in security prices.
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It signifies investors confidence/optimism in the future of economy.
b) Bears
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A speculator/jobber who sells security on expectation of decline in prices in future.
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The intention is to buy same securities at lower prices in future thereby making a gain.
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When market is dominated by bears (sellers predominate buyers) it is said to be bearish.
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It is characterized by general downward trend in share prices. It signifies investors pessimism about the future prospects of the economy.
c) Stags
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This is a jobber found in primary markets
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He buys new securities offered to the public and believes that they are undervalued.
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He believes the price will rise and sell them at a gain to the ultimate investors
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Stags are vital because they ensure full subscription of the share issue.