Explain the following terms as used on the stock exchange market:
(a) Backwardation
(b) Bear
(c) Jobber
(d) Jobber’s turn
(e) Brokerage
Explanation
Explanation of terms used in the stock exchange:
(a) Backwardation: It refers to a charge paid by a seller of stock who delayed delivery of shares to the buyer until a later account.
(b) Bear: This is a speculator who believes the price of a share will fall on the stock exchange and as a result sells now with the intention of buying them back cheaply.
(c) Jobber: This is a dealer on the stock exchange who buys and sells shares on behalf of himself.
(d) Jobber's Turn: This refers to the profit of the Jobber. It is the difference between his buying and selling price.
(e) Brokerage: This is the name of the commission payable to a broker who helps to buy or sell shares on the stock exchange.