Terms used/players in the nairobi securities exchange

Commerce study Manual STUDY MANUAL|PDF NOTES|SYLLABUS|REVISION
  1. Brokers-this is a dealer at market who buys and sells securities on the behalf of the public investors.he is authorized C.M.A to  deal with  quoted securities only and gets a commission for kind of work done. doesn’t buy shares in his own rights but obtains the suitable deal for his client and gives financial advice to investors charging a commission for his services
  2. Jobber/speculators-this are people who buys securities as a principle  on their own names at a lower price and sell them to make a profit.they buy shares in wholesale and sell them to make a profit called jobbers turn.

TYPES OF JOBBERS.

  • Bulls-jobbers who buy securities when prices are low and hold tthem in anticipation of price increase when they will sell and make their profit.the market is said to be bullish when prices are rising.
  • Bears-this are speculators who sell securities on expectation of a decline in prices in the future.The aim of a bear is to buy the same securities at a lower price in future,making a gain.The market is said to be bearish when prices are falling.
  • Stags –they buy newsecurities offered to the general public and believe that price will increase when they will finally sell to the ultimate investors.



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