Stockjobber

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Stock Jobbing Act 1733
Act of Parliament
Coat of Arms of Great Britain (1714-1801).svg
Long title An Act to prevent the infamous Practice of Stockjobbing.
Citation 7 Geo. 2. c. 8
Dates
Royal assent 16 April 1734
Repealed14 June 1860
Other legislation
Repealed by Repeal of Sir John Barnard's Act 1860
Status: Repealed
Stock Jobbing Act 1736
Act of Parliament
Coat of Arms of Great Britain (1714-1801).svg
Long title An Act to make perpetual an Act made in the Seventh Year of the Reign of His present Majesty, intituled, "An Act to prevent the infamous Practice of Stock-jobbing."
Citation 10 Geo. 2. c. 8
Dates
Royal assent 22 April 1737
Commencement 22 April 1737
Repealed14 June 1860
Other legislation
Repealed by Repeal of Sir John Barnard's Act 1860
Status: Repealed
Repeal of Sir John Barnard's Act 1860
Act of Parliament
Coat of Arms of the United Kingdom (1837).svg
Long title An Act to repeal the Act of the Seventh Year of King George the Second, Chapter Eight, commonly called "Sir John Barnard's Act," and the Act of the Tenth Year of King George the Second, Chapter Eight.
Citation 23 & 24 Vict. c. 28
Dates
Royal assent 14 June 1860
Commencement 14 June 1860
Repealed11 August 1875
Other legislation
Repealed by Statute Law Revision Act 1875
Status: Repealed

Stockjobbers were institutions that acted as market makers in the London Stock Exchange. The business of stockjobbing emerged in the 1690s during England's Financial Revolution. During the 18th century the jobbers attracted numerous critiques from Thomas Mortimer, Daniel Defoe and others. These writers denounced the use of market manipulation and front running and regarded it as unethical that the jobbers made money without any interest in the stocks involved. The business survived repeated[ citation needed ] legislation to ban it and became institutionalised.

Prior to the "Big Bang" deregulation of 1986, every stock traded on the exchange passed through a 'jobber's book', that is, they acted as the ultimate purchasers of shares sold and the source of shares purchased, by stockbrokers on behalf of the latters' clients. Stockbrokers in turn were not permitted to be market makers. [1]

In the final years of stockjobbing, the leading firms were Akroyd & Smithers, Wedd Durlacher, Pinchin Denny, Smith Brothers, Bisgood Bishop and Charles Pulley. [2] All of these firms were acquired by investment banks and other financial institutions.

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References

  1. Philip Auger (2000). The Death of Gentlemanly Capitalism. Penguin.
  2. "London insiders remember Big Bang". BBC News . 26 October 2006.

Bibliography