TRADING HISTORY
OF THE STOCK IMPORTANCE OF THE STOCK
BEHAVIOR OF THE STOCK STOCK EXCHANGE ROLE OF STOCK EXCHANGE
AMERICAN STOCK EXCHANGE AUSTRALIA ST EXCHANGE
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The American Stock Exchange (AMEX) is an American stock
exchange situated in New York. AMEX is a mutual organization, owned by its
members.
The Exchange traces its roots back to colonial times when stock brokers
created outdoor markets to trade new government securities. The AMEX started
out as such a market at the curbstone on Broad Street near Exchange Place.
The curb brokers gathered around the lamp posts and mail boxes, resisting
wind and weather, putting up lists of stocks for sale. As trading activity
increased, the shouting reached such a high level that special hand signals
had to be introduced so that the brokers could continue trading. In 1921 the
market was moved indoors into the building where it still resides, and the
hand signals remained in place for decades even after the move.
AMEX's core business has shifted over the years from stocks to options and
Exchange-traded funds, although it continues to trade small to mid-size
stocks. An effort in the mid-1990s to initiate an Emerging Company
Marketplace ended in failure, as the reduced listing standards (beyond the
existing lenient AMEX standards) caused penny stock promoters to move their
scams to a national exchange. In the mid 1990s the exchange was dogged by
allegations of trading improprieties, which were highlighted by Business
Week in 1999.
In 1998, the American Stock Exchange merged with the National Association of
Securities Dealers (operators of NASDAQ) to create "The Nasdaq-Amex Market
Group" where AMEX is an independent entity of the NASD parent company. After
tension between the NASD and AMEX members, the latter group bought out the
NASD and acquired control of the AMEX in 2004.
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