what is the source of income for a stock exchange?Are they a non-profit organisation?

Answer 1

A stock exchange has multiple sources of income. A few such common major sources are as under:

1. Brokers, who are members of an exchange pay membership fee - both Joining and Annual Fees besides security deposit..

2. On all the transactions done in on exchange platform earn a brokerage for exchange as well.

3. Listed companies pay listing fee and then Annual fee every year.

4. Brokers are supposed to deposit margins on their trades/volumes and it becomes a hefty sum at the disposal of an exchange without any interest obligation on it.

5. Defaulting companies and members are required to pay penalties to the exchange as per the rules, and it becomes its income.

6. Various publications, subscriptions by brokers/investors also earn smart income for exchanges.

7. All those margin money, security deposits etc. are invested in permissible securities and bank deposits which again earn an exchange a handsome income regularly.

8. Modern Exchanges like NSE / BSE offer various investor services, infrastructure leases to broker members on regular basis which earn them regular income at good commercial prices.

Stock Exchanges are not Non-Profit Organisations by concept, nature and conduct of their business.

Answer 2

They charge fees. Some are to the listed companies and others are charge to the members (pennies per trade, but it adds up with volume)

Not for profit? They used to be. Now some are and some aren't.

Answer 3

when companies list themselves in stock exchanges they pay a fee..

Answer 4

In stock exchange - there are brokers who's buying and selling stocks. If you want to buy or sell your stocks, you find a broker who would handle that for you, then you will pay that broker.

Answer 5

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