Definition

1. Noun:
   • A person who deals in stocks and shares, especially one who trades only with other brokers or jobbers rather than with the public: A stockjobber is a member of a stock exchange who buys and sells securities, typically acting as an intermediary or wholesaler in the market.

Usage

• The term "stockjobber" is a historical and specific financial term. It primarily refers to a role that existed on the London Stock Exchange before 1986, known as the "Big Bang." Stockjobbers did not deal directly with the public but acted as market makers, holding inventories of stocks and dealing with stockbrokers who represented clients.
• It is important to distinguish a (a dealer/wholesaler) from a (an agent who executes orders for clients).

Examples

• Noun:
  • Before the deregulation of the London market, a stockjobber could not deal directly with an outside client.
  • The system relied on stockjobbers to provide liquidity by quoting bid and offer prices for shares.

Advanced Usage

• Historical Context: The role of the stockjobber was central to the "single capacity" system on the London Stock Exchange, which separated the functions of brokers (agents) and jobbers (principals). This system was abolished in 1986.
• "Jobber's Turn": This phrase referred to the profit a stockjobber made from the difference between the price at which they were willing to buy a stock (the bid price) and the price at which they were willing to sell it (the offer price).

Variants and Related Words

• Jobber (n): A shorter, more general term for a dealer in securities or goods. In finance, it is often synonymous with "stockjobber."
• Stockbroker (n): An agent who buys and sells stocks and shares on behalf of clients.
• Market Maker (n): A modern equivalent; a firm or individual that quotes both a buy and a sell price for a security, standing ready to make a market.

Synonyms

• Dealer: One who buys and sells securities as a principal.
• Market Maker: A contemporary term for an entity that facilitates trading by providing liquidity.
• Trader: A general term for someone who buys and sells financial instruments.

Antonyms

• Stockbroker: An agent who executes trades for clients.
• Investor: One who allocates capital with the expectation of a future financial return, typically not engaging in frequent trading as a business.

Related Phrases/Idioms

• To job the market: An older phrase meaning to deal or speculate in the stock market, often associated with the activities of a stockjobber.
  • In the 19th century, he made his fortune by jobbing the market.

Noun

1. one who deals only with brokers or other jobbers