FundRobot » Best Investment » Do stockbrokers receive any fees from corporations for issuing proxies and dividends?

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Old   #1 (permalink)
 
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Default do stockbrokers receive any fees from corporations for issuing proxies and dividends

I purchased stock for one company a few years ago for the purpose of receiving benefits as one of their stockholders. My stockbroker has not received a penny from me since the first trades were free. I just wonder if they are making any money for holding my stock or is it a loss. Will they at some point say something about it?

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Old   #2 (permalink)
 
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Default do stockbrokers receive any fees from corporations for issuing proxies and dividends

Although the brokerage may not be making much off of you individually, they do "make money" from accountholders as a whole - mainly in the form of commissions.
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Old   #3 (permalink)
 
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Default do stockbrokers receive any fees from corporations for issuing proxies and dividends

The stockbroker i called said that you are helping the firm because they are judged by their "assets under management" when they solicit new business. He was slightly vague about getting any kickbacks or reimbursements from the companies whose stocks they hold (but it seemed like they do not get paid for issuing proxies or dividends). His firm charges $7 total for the purchase of 1,000 shares of stock. And no charge to hold them. You paid zero but a paying customer might have only paid $7.

Your broker will get paid when you sell your shares. That will be her only profit on your account.

The stockbroker also gets to send you promotional information to get you to purchase additional investments. They would rather send to existing customers than to strangers.
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Default do stockbrokers receive any fees from corporations for issuing proxies and dividends

Given that I'm as poor as the proverbial churchmouse, (is that one word or two?), I know nothing about stock-holding, but SRC50's answer seems to be right on the money (get it?)
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