Room

trader. One who is a member of an exchange and speculates in the room (on the floor of the exchange) for his own account. When a room trader on the New York Stock Exchange pur-: chases a stock he tries at once or as soon as po ible to sell it at a profit. Likewise, when he sells a stock short (sells stock which he does not own) he tries at once or as soon as po ible to buy it back at a profit. He is not ready, as is the London jobber, to either buy or sell at prices named by himself, but he bids for (offers to buy) or offers (offers to sell) stock accordingly as he thinks he may be able to make a profit by probable subsequent changes in the price. It is his purpose each day if practicable to even up—to sell as many stocks as he has bought or to buy as many stocks as he has sold. The member of the London Stock Exchange who correv sponds in a measure to the room trader on the New York Stock Exchange is the jobber. The London jobber is not a broker. He deals wholly for himself. He is practically a wholesale dealer in securities, buying as well as selling. He will either buy or sell at prices named by himself. The jobber does not deal with the outsider (the speculator who is not a member of the exchange). The broker receives the order from the outsider and in executing it deals with the jobber. The broker goes to the jobber and without saying whether he wishes to buy or sell asks the jobber to “make a price.’ The jobber names two prices, for instance, 99 3-8 and 995-8, meaning that he will buy at the lower price or will sell at the higher price. The jobber expects to undo or cover the bargain (transaction) by a fresh transaction with another jobber or broker whereby he will sell stock that he has bought or will buy stock that he has sold. 454