Whilst investors in shares make money by selling shares for a higher value than they are purchased for. The majority of financial markets are based in the financial capitals of the world such as the London, New York and Tokyo Stock Exchanges. Although the emergence of the internet has seen a rise in the number internet stock exchanges such as Nasdaq, as well as several on-line stockbrokers. Insurance - Short and long term. The way the LSE used to operate involved 'Jobbers' and stockbrokers.
Jobbers run around the trading floor buying and selling shares for stockbrokers.
The jobbers make money for themselves by the difference between what stockbrokers are prepared to pay for shares and the price at which they are actually bought and sold for. A stockbroker makes money from commissions earned from buying and selling shares to the world at large. The system of the LSE was little changed from the 1800's until the 1980's. The LSE operated on a single capacity basis where it was there to provide information about share values, whilst the stockbrokers simply bought and sold. The system worked fine until the 1980's, where a result of increased public share ownership meant a radical rethink of the stock exchange.