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People Involved in the Stock Exchange

The registered members of the stock exchange and the procedures for their business include:

i. Jobbers: These are the dealers in stocks and shares. They buy and also sell shares.  The shares have two (2) different prices – usually a lower one for buying and a higher one for selling. The difference between the two prices is known as the jobbers’ turn and this represents the profit that the jobbers make.

ii. Brokers: Members of the public buy shares from jobbers through brokers who serve as agents. Brokers get a commission on the purchases and sales which they negotiate.  The duty of a broker is to act as a medium between their client and the job.

iii. Authorized clerks: These are the employees of jobbers and brokers who help their principals to buy and sell stocks and shares.

iv. Unauthorized clerks: These are clerks who do minor and routine clerical work for jobbers and brokers. They cannot carry out business on the floor of the stock exchange.

v. Investors: These are people or institutions that buy stocks or shares for the sake of investment. They intend to hold the securities in order to secure a regular income from the capital.

vi. Speculators: These are people who buy shares, not because of the regular income they could obtain, but because of the profit they will make from fluctuation in the shares.  The ‘Bulls’ are people who buy shares hoping that price will rise for them to sell and make a profit. The ’Bears’ are people who sell shares because they expect the price to fall.

vii. The Farmers Agents: These are people who inform the farmers about the stock exchange market and get them involved in it. They act as an intermediary between the farmers and the stock exchange in order to generate interest from the transaction.

viii. Buyers: People who buy shares in an organization.

ix. Sellers: People who have stock for sale. Sellers can either be an individual or an organization.

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