How stock exchange make profit?

Question

How stock exchange make profit?

Answer 1

KB's answer is brief, but thorough.

Answer 2

I think the Hong Kong stock exchange is profited from trading of stock shares between clients and listed companies. As the common shares of any listed company after the security check by the Hong Kong monetary authority is usually allowed to issue ranging from ten to hundred times values of shares of any listed company against its net assets, it is simply described the shares value is bubbled from 10 to 100 times. A company has capital of one million dollars is allowed to issue a total common shares of valued one hundred million dollars and listed for trading. As it is involved that much bubbled money, Hong Kong is known as the international capital of scams in stock shares trading and real estate transaction. If i were you, i wouldn't have no guts to invest in stock market and real estate in Hong Kong. I guess HOng Kong crooks are learned from the US scams.

THere are hundreds of stock markets scams in Hong Kong every day, particularly the new types of stock shares investment (gambling), such as warrant and bullion.

http://www.marketwatch.com/news/story/ho...

http://search.yahoo.com/search?p=profits...

http://rawstory.com/news/dpa/Hong_Kong_c...

Answer 3

Public companies who issue stock (meaning they allow people to invest money in their company with the expectation of a financial dividend) pay the stock exchange market to have their stock traded on that market (e.g. - New York Stock Exchange, Toronto Stock Exchange, etc.).

Answer 4

All exchanges have what is called "listing fees" which are paid by corporations to have their company traded on that given exchange.

All members of the exchange must pay dues to the exchange to have the privilege to be a member, which is used to cover some of the expenses of running the exchange.

There are transactions fees that must be paid by the members for executing trades on the floor, either for themselves or for others.

Firms must pay exchange fees for use of the exchange facilities in providing quotes and updated transactions.   These fees are paid both by members and those vendors that have been approved to use such information.

The exchanges act as primary regulators for their members, and as such charge for all extensions of credit requested by the firms on behalf of the general public.

There are on occasions when members violate the rules and/or regulations of the exchange or other regulatory agencies and for doing such are fined and in most cases the fines are a substantial amount of money.

Although the exchanges were not founded to be profit making organizations, they do make some profits.  However, the cost of running an exchange is extremely high, so the profits are never that great.