The companies that operate exchanges for securities, commodities and other financial instruments robust institutions. These companies are extremely profitable, with operating margins usually in the high teens. Extreme market turbulence has been caused by the coronavirus. As a result, stock markets globally have taken big hits since the beginning of the year. That the damage … Continue reading How did the Exchanges do in the Financial Crisis of 2008?
Stock exchanges are beautiful business models with very strong two-sided economics. In fact, you could say that they are multi-sided economics. Exchanges serve companies in need of efficiently racing capital through Initial Public Offerings, as well as serving sellers and buyers of risk capital by making the secondary market for those assets more efficient. Demutualization … Continue reading Stock Exchanges | Beautiful Business Models