AMEX the American Stock Exchange

AMEX

The American Stock Exchange (AMEX) is the second largest stock exchange in the United States. It originated from the Stock Exchange (NYSE), and eventually merged with the National Association of Securities Dealers (NASD), which also operates NASDAQ. Listing rules at the AMEX remain more lenient than the NYSE, while the results for the AMEX Composite Index (XAX) show the exchange is successful. The AMEX trades a significant number of stocks and options, and is run by a number of officials, and is self-regulated with specific groups that regulate disciplinary actions.

The AMEX has a long history that dates back to colonial times in the United States (Nationmaster.com). The exchange started when brokers began to gather outside the New York Stock Exchange (NYSE) to trade stocks that did not meet NYSE listing requirements (Investorwords.com). The brokers gathered around mail boxes and lampposts on the curbs on Broad Street near Exchange Place in all kinds of weather. Shouting became so loud at times that hand signals were introduced in order to allow trading to continue. The AMEX moved indoors in 1921 to a building where it remains housed to this day (Nationmaster.com). The AMEX is sometimes called The Curb, a name that reflects its early origins on the streets outside the NYSE (Investorwords.com).

IN 1998, the NASDAQ-Amex Market Group was created by a merger of AMEX and the National Association of Securities Dealers (NASD). NASD operates NASDAQ (originally an acronym for National Association of Securities Dealers Automated Quotations). This merger created the NASDAQ-Amex Market Group. Today, the two companies operate separately, with AMEX an independent entity of NASD. The AMEX is operated by the American Stock Exchange LLC (Nationmaster.com).

Today, listing rules at the AMEX remain true to their tradition of being a bit more lenient than the NYSE. As a result, the AMEX offers more stocks and bonds that are issued by smaller companies. The AMEX also offers some interest rate options and index options trading (Investorwords.com). The AMEX offers more than 1000 exchange traded funds (ETFs). The ETF securities category was pioneered at the AMEX (CCH INCORPORATED).

The Amex Composite Index (XAX), established in October 2001, is a listing made up of equities available on the AMEX. Since inception, the Amex Composite Index has shown an increase of 57.3%, as compared to the NASDAQ Composite's gain of 26.6%, the S&P 500's gain of 7.1%, and the NYSE composite's gain of 14.3% (American Stock Exchange).

Values and volumes of stocks and options at the AMEX are significant. Closing values as of 10/11/2004 at 5:07 PM ET show significant activity. As of this date, the total volume was 44,288,030, with 1,359 block trades. Total options volume was 576,653, and bond volume was 102,000 (American Stock Exchange).

Like other stock exchanges, the AMEX is run by a number of officials. Officers of the AMEX include Chairman and Chief Executive Officer SALVATORE F. SODANO, the President Peter Quick, Executive Vice President Ralph R. Rafaniello, and Chief Financial Officer and Controller MICHAEL T. D'EMIC. The AMEX also has a Board of Governors, trustees, a nominating committee, exchange officials, floor officials and a disciplinary panel hearing board (CCH Incorporated).