American Stock Exchange (AMEX), market for trading stocks, bonds, and other financial instruments, based in New York City. AMEX is one of the largest markets for financial trading in the United States. In 2001 about 700 companies were listed on the exchange and the market value of their stocks totaled about $100 billion. AMEX is the third largest stock exchange in the United States, behind the New York Stock Exchange and The Nasdaq Stock Market.
Trading on AMEX is initiated by stock brokers acting on behalf of their clients. These brokers place orders with members of the exchange called specialists, who concentrate on trading specific stocks. The broker and the specialist negotiate to arrive at a price for the stock.
In addition to trading stocks and bonds, AMEX pioneered trading in derivatives, a type of investment based on the performance of an underlying asset or financial index. For example, AMEX trades Standard & Poor’s Depository Receipts (SPDRs), which are derivatives tied to the Standard & Poor’s 500 Index. This index records the ups and downs of the stock market in the United States by measuring the performance of 500 selected stocks. The SPDRs are traded like stocks, but their price fluctuates according to the value of the Standard & Poor’s 500 Index. See also Standard & Poor’s Indexes.
The American Stock Exchange originated in the 19th century in the streets of the financial district of New York City where brokers would meet to trade stocks and bonds. In 1908 these brokers formed an organization known as the New York Curb Agency. In 1911 the organization changed their name to the New York Curb Market Association. The association, also known simply as the Curb, moved to offices at Trinity Place in downtown New York City in 1921. In 1953 the name was changed to the American Stock Exchange. AMEX was traditionally known as the home of oil and mining companies’ stock, but over time it began listing the stock of many different kinds of companies.
In 1998 AMEX merged operations with the National Association of Securities Dealers, Inc., the organization that manages The Nasdaq Stock Market, to form the Nasdaq-AMEX Market group. The combined company oversees operations of both exchanges but maintains AMEX and Nasdaq as separate stock exchanges.
Trading on AMEX is initiated by stock brokers acting on behalf of their clients. These brokers place orders with members of the exchange called specialists, who concentrate on trading specific stocks. The broker and the specialist negotiate to arrive at a price for the stock.
In addition to trading stocks and bonds, AMEX pioneered trading in derivatives, a type of investment based on the performance of an underlying asset or financial index. For example, AMEX trades Standard & Poor’s Depository Receipts (SPDRs), which are derivatives tied to the Standard & Poor’s 500 Index. This index records the ups and downs of the stock market in the United States by measuring the performance of 500 selected stocks. The SPDRs are traded like stocks, but their price fluctuates according to the value of the Standard & Poor’s 500 Index. See also Standard & Poor’s Indexes.
The American Stock Exchange originated in the 19th century in the streets of the financial district of New York City where brokers would meet to trade stocks and bonds. In 1908 these brokers formed an organization known as the New York Curb Agency. In 1911 the organization changed their name to the New York Curb Market Association. The association, also known simply as the Curb, moved to offices at Trinity Place in downtown New York City in 1921. In 1953 the name was changed to the American Stock Exchange. AMEX was traditionally known as the home of oil and mining companies’ stock, but over time it began listing the stock of many different kinds of companies.
In 1998 AMEX merged operations with the National Association of Securities Dealers, Inc., the organization that manages The Nasdaq Stock Market, to form the Nasdaq-AMEX Market group. The combined company oversees operations of both exchanges but maintains AMEX and Nasdaq as separate stock exchanges.
