What is the Difference Between a Jobber and a Broker in Stock Trading?
In the world of stock trading, the terms jobber and broker refer to two different types of intermediaries who facilitate the buying and selling of securities. Though they both operate in the stock market, their roles, functions, and the way they interact with clients and the market itself differ significantly. Understanding these differences is crucial for anyone engaged in trading or investing. 1. Definition and Core Functions Jobber (Market Maker) A jobber, also known as a market maker in many modern markets, is an individual or firm that buys and sells securities on their own account to provide liquidity in the market. They are not directly involved with the public or individual clients. Instead, they operate within the market to ensure that there are always buyers and sellers available, thereby facilitating smooth trading. Main Role: Provide liquidity by continually offering to buy or sell securities. Nature of Business: Trading on their own account. Interaction