Operators at Stock Exchange

Broker:- Commission agents and act as an intermediary between buyer & seller of securities. They do not purchase & sell securities on their behalf. They bring together buyers & seller and help them making a deal. They change commission from both parties. They are experts in estimating prices and advise their clients in getting gain. They get orders from public and execute the orders through jobbers.

· Jobbers:- are security merchants dealing in shares, debentures as independent operators. They buy & sell securites on their own behalf and try to earn through price changes. They directly deal with broker who make transactions on the behalf of public. They generally quote two price, one – for purchase and other for sell. Difference between the two is known as jobber’s profit or Jobber’s turn.

· Tarawaniwala’s:- Member’s of BSE has unofficially divided themselves into two categories:-

a) Broker

b) Tarawaniwala’s -Act as both jobbers & broker

A tarawaniwala makes transaction’s on his own behalf like a jobber but he may also act as a broker on behalf of public. They indulge in malpractices to earn profits. They may sell their own securities to their client when prices are higher & vice versa.

Types of Speculators:-

Bull:- A bull or Tejiwala is an operator who expects a rise in prices of securities in the future. In anticipation of price rise, he makes purchases of shares and other securities with the intention to sell at higher prices in future. He has no intention of taking delivery of securities but deals only in difference of prices. They also tries to raise the prices of securities by placing big purchase orders

· Bear:- A bear or Mandi wala speculator expects prices to fall in future and sells securities at present with a view to purchase them at lower prices in future. He does not have securities at present but sells them at prices in anticipation that he will supply them by purchasing at lower prices in future. When bear operator starts selling the securities bearish pressure gradually forces down the prices.

· Stag:- It is a cautious speculator. He applies for shares in new companies and expects to sell them at a premium if he gets an allotment. He select those companies whose shares are more in demand and carry premium. He generally sell the shares before being called to pay the allotment money. He is not interested in allotment of securities. He applies for large no. of shares so that he gets some allotment even if there is heavy over subscription.

· Lame Duck:- Where bear finds it difficult to fulfill his commitment, he is called struggling like a lame duck.

For Example:- A bear contracts to sell securities at a later date. On particular time, he is not able to get securities due to any reason.