Jobber

A member of the London Stock Exchange who deals between members of the exchange and not for outside principals or clients. He is practically a wholesale dealer in securities, buying as well as selling. He will either buy or sell at prices named by him. The jobbers make the market (establish the prices) in London, whereas in New York prices are established by the bids and offers of brokers. _On the London Stock Exchange a broker is not a jobber; he is merely an agent who acts for another in buying from or / ’ selling to a jobber. A broker in executing an order asks a jobber to “make a price” on the security in which he wishes to deal and the jebber, who does not know whether the broker is buyer or seller, names two prices, for instance, 99 3-8 and 99 5-8, meaning that he will sell at the higher or buy at the lower price. If the broker has an order to buy he buys of the jobber at-his (the jobber’s) selling price or, if he has an order to sell he sells to the jobber at his (the jobber’s) buying price. The jobber expects to undo or cover the bargain at a profit by a fresh transaction with another jobber or broker. The jobber has prices for the account and other prices for money. See For the account; also see For cash, under which title will be found the definition of for money. Another name for jobber is dealer, but its use is le frequent than jobber. The member of the New York Stock Exchange who corresponds in a measure to the jobber on the London Stock Exchange is the room trader (sometimes called floor trader). He speculates on his own account and when he purchases 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 prac-, ticable, to even up—to sell as many stocks as he has bought or to buy as many stocks as he has sold. In trade a jobber is one who buys goods in bulk from the importer and manufacturer and sells to the retailer. Jobber’s turn. London Stock Exchange term; the jobber’s profit as represented by the difference between the price at which a jobber buys from or sells to a broker and the middle price at which he covers his bargain (that is, when he covers at the middle price, as he often does). Thus, if his prices are 99 7-8—100 1-8 and he sells to a broker at 100 1-8 and undoes or covers the bargain by buying from another jobber at 100 his turn is 1-8. But if he buys from another broker at 99 7-8 he makes two turns. It is not often, however, that he is fortunate enough to deal between two brokers; more frequently he “takes his turn” by covering his bargain with another jobber at the middle price.. 281